$44$ During the current year, Irene, a married individual

who files a joint return, reports the following items of income and loss:

Salary $$130,000$

Activity X $($passive$)10,000$

Activity Y $($rental real estate, nontrade or business$)(30,000)$

Activity Z $($rental real estate, nontrade or business$)(20,000)$

Irene actively participates in activities Y and Z and owns $100\%$ of both Y and Z$.$

a$.$ What is Irene$$s AGI for the year?

b$.$ What is the amount of suspended losses $($if any$)$ that may be carried over with respect

to each activity

$50$ Casualty Losses: Year of Deduction. Jerry sprayed all of the landscaping around his business

with a pesticide in June $2023.$ Shortly thereafter, all of the trees and shrubs unaccountably

died. The FMV and the adjusted basis of the plants were $$15,000.$ Later that year, the pesti$-$cide manufacturer announced a recall of the particular batch of pesticide that Jerry used. It

also announced a program whereby consumers would be repaid for any damage caused by

the improper mixture. Jerry is single and reports $$38,000$ AGI in $2023$ and $$42,000$ in $2024.$

a$.$ Assume that in $2023$ Jerry files a claim for his losses and receives notification that pay$-$ment of $$15,000$ will be received in $2024.$ Jerry receives full payment for the damage in

$2024.$ How should the loss and the reimbursement be reported?

b$.$ How will your answer to Part a change if in $2024$ the manufacturer files for bank$-$ruptcy and Jerry receives $$1,500$ in total and final payment for his claim?

c$.$ How will your answer to Part a change if the announcement and the reimbursement do

not occur until late in $2024,$ after Jerry has already filed his tax return for $2023?$