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?

26. Which of the following would be a passice activity? Explain

a) Kevin is a limited partner in Marlin Bay Resort and owns a 15% interest in the partnership

b) Tom owns a 15% interest in a real estate development firm. He materially participates in the management and operation of the business.

c) Jasmine owns and operates a bed-and- breakfast

d) Felicia owns a 25% working interest in an oil and gas deposit.

e) Assume the same facts as in part d, except that Felicia owns a 25% interest in a partnership that owns a working interest in an oil and gas deposit. She does not materially participate in the management and operation of the partnership.