19. R owns a 1046 interest as a limited partner in the ABC Partnership that was formed in 2019. R invested $40,000 in the partnership. During the year the partnership borrowed $600.000 from bank in order to obtain additional operating funds. Because R is a limited partner, he is not personally liable for partnership debts. The net partnership loss for the year was ($500,000). R's share of the net loss was (550.000). Considering only the "atrisk" rules, indicate the amount of net loss that may deduct, ir any, on his 2019 tax return. A. SO D $50,000 R $5.000 E. $64,000 C. $40,000 20. Q. a single individual, paid $8,000 for childcare while she was working. Q's has three dependent children, 8, 10 and 14 years old. Ocamed $70,000 from her job. Her AGI was also $70,000. Given this information, Omay claim a dependent care credit of D. $14,000 B S1,200 E. None of the above C. $1,400 21. Jane, a single individual, purchased a home for $500,000 to be used as her personal residence. She lived in the home for 3 years before converting the home to rental use to generate rental income. Jane moved into an apartment while her residence was rented to others for 2 years. She sold the home in 2019 for $800.000. She claimed $30,000 of depreciation related to the home while it was rented. Given these facts, indicate the total amount of taxable gain, if any, that Jane should report on her 2019 tax retum. A. SO D. S150,000 B $120.000 E. None of the above C. $30,000 22. Assume the same facts as indicated in (21) above except the Jane first used the home as a rental to generate rental income. After renting the home to others for 2 years, she moved into the home and used it as her principal residence for 3 years prior to selling it in 2019. Given the revised facts, indicate the total amount of taxable gain, if any, Jane should report of on her 2019 tax retum. A. SO D. SI50,000 B. $120,000 E. None of the above C. $30,000 23. Suspended passive activity losses may be used to offset active income: A. When active income exceeds the suspended passive losses B. When portfolio income exceeds the suspended passive losses C. Only after a 5 year waiting period D. When the taxpayer sells his or her interest in the passive activity E. When the suspended loss relates to a business the taxpayer owns 24. R, a single individual age 40, opened a Roth IRA three years ago. On January 1, 2019. R withdrew $13,000 from the account in order to take a vacation. Other facts related to the IRA are indicated below: Year 2016 2017 Amount contributed $3,000 $4,000 $5.000 $12,000 Interest and gains $1,000 $2.000 $3.000 $6,000 Account balance $4,000 $10,000 $18,000 2018 Totals Because the withdrawal was made before the minimum 5 year holding period was met, and before R was 59 years old, R should report the following amount of income in 2019 related to the withdrawal: A SO D. $13,000 B. $1.000 E. None of the above C. $6,000 19. R owns a 1046 interest as a limited partner in the ABC Partnership that was formed in 2019. R invested $40,000 in the partnership. During the year the partnership borrowed $600.000 from bank in order to obtain additional operating funds. Because R is a limited partner, he is not personally liable for partnership debts. The net partnership loss for the year was ($500,000). R's share of the net loss was (550.000). Considering only the "atrisk" rules, indicate the amount of net loss that may deduct, ir any, on his 2019 tax return. A. SO D $50,000 R $5.000 E. $64,000 C. $40,000 20. Q. a single individual, paid $8,000 for childcare while she was working. Q's has three dependent children, 8, 10 and 14 years old. Ocamed $70,000 from her job. Her AGI was also $70,000. Given this information, Omay claim a dependent care credit of D. $14,000 B S1,200 E. None of the above C. $1,400 21. Jane, a single individual, purchased a home for $500,000 to be used as her personal residence. She lived in the home for 3 years before converting the home to rental use to generate rental income. Jane moved into an apartment while her residence was rented to others for 2 years. She sold the home in 2019 for $800.000. She claimed $30,000 of depreciation related to the home while it was rented. Given these facts, indicate the total amount of taxable gain, if any, that Jane should report on her 2019 tax retum. A. SO D. S150,000 B $120.000 E. None of the above C. $30,000 22. Assume the same facts as indicated in (21) above except the Jane first used the home as a rental to generate rental income. After renting the home to others for 2 years, she moved into the home and used it as her principal residence for 3 years prior to selling it in 2019. Given the revised facts, indicate the total amount of taxable gain, if any, Jane should report of on her 2019 tax retum. A. SO D. SI50,000 B. $120,000 E. None of the above C. $30,000 23. Suspended passive activity losses may be used to offset active income: A. When active income exceeds the suspended passive losses B. When portfolio income exceeds the suspended passive losses C. Only after a 5 year waiting period D. When the taxpayer sells his or her interest in the passive activity E. When the suspended loss relates to a business the taxpayer owns 24. R, a single individual age 40, opened a Roth IRA three years ago. On January 1, 2019. R withdrew $13,000 from the account in order to take a vacation. Other facts related to the IRA are indicated below: Year 2016 2017 Amount contributed $3,000 $4,000 $5.000 $12,000 Interest and gains $1,000 $2.000 $3.000 $6,000 Account balance $4,000 $10,000 $18,000 2018 Totals Because the withdrawal was made before the minimum 5 year holding period was met, and before R was 59 years old, R should report the following amount of income in 2019 related to the withdrawal: A SO D. $13,000 B. $1.000 E. None of the above C. $6,000
