12-18 b. Passive Activities. G is the head chef for Hall-way Alls, lakinig a salary of $70,000 a year. In addition, his portfolio income is about $20.000 VAN the years, G has made numerous investments and has been a participant in mar ventures. Indicate whether the passive activity rules would apply in each of thi following situations: a. A $10,000 loss from G's interest in Flimsy Films, a limited partnership. G is a limited partner. A $5,000 loss from G's interest as a shareholder in D's Bar and Grill, an S corporation. G and his wife operate the bar. Each spent 300 hours working there in the current year. G and his friend, F, are equal partners in a partnership that produces and mar- kets a Texas-style barbecue sauce. G leaves the management of the day-to-day operations to F. However, G spent 130 hours working in the business during the current year. For the year, the partnership had income of $15,000. Assume that this is G's only investment. Same as (c) except G has an ownership interest in three other distinctly differ- ent activities (e.g., construction and consulting). He spends 130 hours in each of the four activities. d. G is a 10% partner in a restaurant consulting firm. The firm operates the busi- ness on the bottom floor of a three-story building it owns. The firm leases the other two floors to a law firm and a real estate company. The consulting side of the business reported a $100,000 profit from consulting, $5,000 in interest income, and had a loss from the rental operation. f. G is the sole owner of Try, Inc., a regular C corporation that produces o special salad dressing. The corporation had an operating profit of $4,000. 1 addition, Try, Inc. had interest income of $5,000 and a $7,000 loss from its investment in a real estate limited partnership in which it was a limited partner 12 10 Dae Activi tati