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?

60.Katelyn purchased 300 shares of Condine, INC. stock in 2014 for $9000. During 2016, she sells 200 shares of Condine to he brother, Jon, for $3600 and the remaining 100 shares to an unrelated third party for $2000.

c) Assume that Jon sells the shares in 2017 for $6200. What impact does the sale have on his and Katelyn's 2017 taxable incomes?

d) Assume that Jon sells the shares in 2017 for $3100. What impact does the sale have on his and Katelyn's 2017 taxable incomes?

67. Ghon and LI own a home on Lake GIbran. During a heavy rainstorm, the lake overflows and floods the basement, which is used as their family room. The entire contents of the basement (rug, furniture, stereo, and so on) are destroyed. The insurance adjuster estimates that the damage to the basement and its contents is $13500. Ghon and Li do not have flood insurance, so the insurance company will reimburse them only $2700 for the damage. If their AGI for the year is $58000, what is their deductible casuality loss?

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.