1. During 2018, Hugh had the following net income and loss with respect to nonrental nonreal estate activities:

Activity X	($50,000) net loss
Activity Y	$20,000 net income

Both Activity X and Activity Y are passive activities to Hugh. Hugh purchased Activity X in 1987 and Activity Y in 1993. How much loss that Hugh may deduct in 2018?

a. ($50,000)

b. ($30,000)

c. ($3,000)

d. $0

e. None of these

2. Billy owns several parcels of rental real estate, and he actively participates in managing the properties. His total loss from these activities in 2018 is $30,000. Assuming that his AGI for 2018 is $110,000, what is the allowable deduction from these properties in 2018?

a. $0

b. $15,000

c. $20,000

d. $30,000

3. Billy owns several parcels of rental real estate, and he actively participates in managing the properties. His total loss from these activities in 2018 is $30,000 and his AGI for 2018 is $110,000. How much of the disallowed loss from rental real estate activities may be carried over to future years?

a. 0%

b. 10%

c. 50%

d. 100%

4. Billy owns several parcels of rental real estate, and he actively participates in managing the properties. His total loss from these activities in 2018 is $30,000 and his AGI for 2018 is $110,000. For how many years may any disallowed loss be carried forward?

a. The disallowed loss may not be carried forward.

b. The disallowed loss may be carried forward for 15 years.

c. The disallowed loss may be carried forward for 15 years, but only after it has been carried back for 3 years.

d. The disallowed loss may be carried forward indefinitely.