5. In 2021, Bruce invested $20,000 in a horse breeding business. The business lost $15,000 in 2021, and Bruce's share of the loss is $5,000. In addition, Bruce also invested in an alpaca farm. His share of income from the alpaca farm is 53,000 . Bruce does not meet the tests for material participation for either of his business interests Bruce has salary of $80,000 from his job as a sports writer and $2,000 of dividend income from his shares of Tesla. How much of Bruce's $5,000 loss from the horse breeding business can he deduct this year? . $5,000 c. $3,000 because he has $2,000 of b. $0 dividend income d. $3,000 because he has $3,000 income from another passive activity 6. Which of the following statements is/are true? 1. The at-risk limitation limits a taxpayer's deductions to the amount "at risk," which is the amount the taxpayer stands to lose if the investment becomes worthless. 2. The passive loss rules require the taxpayer to segregate all income and losses into three catcgories: active, portfolio, and passive. 3. Any trade or business or income-producing activity in which the toxpayer docs not materially participate is considered a passive activity. 4. In general, passive losses can only offset active income. a. 1 only b. 1 and 2 only c. 2 and 3 only d. 3 and 4 only e. 1,2 , and 3 only 7. Which of the following statements is false: 1. A taxpsyer's $179 deduction cannot exceed an annual ceiling amount ($1,050,000 in 2021). 2. The annual ceiling amount gets reduced if a taxpayer places in service $2,620,000 of qualifying property in 2021. 3. Tremonil purchased equipment for a business that cost $212,000 in 2021. The tacable income of the business for the year is $75,000. Tremonil's $179 expense deduction for 2021 is limited to $75,000. 4. Tremonil purchased equipment for a business that cost $212,000 in 2021. The tacable incorne of the business for the year is $275,000. Tremonil's $179 expense deduction for 2021 is $212,000. 5. None of the above. a. 1 b. 2 c. 3 8. In 2021, Sumaiah sold Beery Pong, Ine, stock and had a $12,000 net short-term capital loss. Sbe had no other capital gains and losses. In 2021, she defucted the maximum allowed capital loss. The balance of the loss was carried forward to 2022 (and used to offset 2022 gains). In 2022, Sumaiah sold Awesome Coupany stock and bad a $16,000 long-term capital gain and no other capital gain or loss transactions. Which of the statemeats below is correen? HINI: In this problem, you need to figure out what happens in each tax year. How much of the loss in 2021. was allowed? The balance of the loss gets carried forward wo 2022, You then net this loss against the gain in 2022 to come up with your answer. a. She has a 2022$16,000 net capital gain. b. She has a 2022$7,000 net eapital loss. c. She has a 2022$7,000 net eapital gain. d. She has a 202253,000 capital loss deduction