27. Which of the following are passive activities?

a. Marvin is a limited partner in the Jayhawk Beach Club and owns a 20% interest in the partnership.

b. Marcie owns a royalty interest in an oil and gas operation.

c. Neil owns an 18-hole semprivate golf course.He is a certified professional golfer and serves as the club pro. He provides lessons and is involved in the daily management of the business.

d. Assume the same facts as in part c, except tha Neil plays on the professional tour. When on break from the tour, he mingles with the members and conduct golf clinics. The club is managed by his brother and sister.

e. Laura owns a commercial office building. She spends more than 500 hours a year managing the building. She also spends 1700 hs working in her own real estate development firm.

f. Assume the same facts as in part e, except that Laura hires a full time manager for the commercial office building. She spends 75 hs meeting with the manager and reviewing the operations.

29. Aretha and Betina own a 10-unit apartment complex. Aretha owns a 60% interest in the apartment complex, and Betina has a 40% interest. Aretha is an investment banker and spends 120 hs helping to manage the apartment complex. Betina is the co-owner of a real estate agency where she works 1600 hs a year. She also spends 520 hs managing the apartment complex. During the current year, the apartment complex generates a loss of $24000. Aretha's adjusted gross income before considering the loss from the apartment complex is $175000 and Betina's is $162000

a) How much of the loss can Aretha deduct?

b) How much of the loss can Betina deduct?

c) Assume the same facts except that Aretha's AGI before the rental loss is $145000 and Betina's is $140000. How much of the loss can Aretha deduct? How much of the loss can Betina deduct?

31. Mort is the sole owner of rental real estate that products a net loss of $18000 in 2015 and $20000 in 206 and income of $6000 in 207. His AGI, before considering the rental property for the years 2015 through 2017, is $120,000 , $140,000 and $90,000 respectively.

a. What is Mort's AGI for 2015, 2016,2017 if he qualifies as a real estate professional?

b. What is Mort's AGI income for 2015,2016, and 2017 if he actively participates in the rental activity?