1, Problem 7-62 (LO 7-4)

Anwer owns a rental home and is involved in maintaining it and approving renters. During the year he has a net loss of $17,400 from renting the home. His other sources of income during the year are a salary of $112,250 and $18,700 of long-term capital gains.

How much of Anwers $17,400 rental loss can he deduct currently if he has no sources of passive income?

deductible rental loss

2, Problem 7-51 (LO 7-2)

Three years ago, Adrian purchased 565 shares of stock in X Corp. for $86,445. On December 30 of year 4, Adrian sells the 565 shares for $75,145. (Leave no answers blank. Enter zero if applicable. Loss amounts should be indicated with a minus sign.)

Problem 7-51 Part-b

b. Assuming Adrian has no other capital gains or losses, except that on January 20 of year 5, Adrian purchases 565 shares of X Corp. stock for $75,145. How much loss from the sale on December 30 of year 4 is deductible on Adrians year 4 tax return? What basis does Adrian take in the stock purchased on January 20 of year 5?

deductible loss
basis