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6. Bill is a real estate professional and makes all management decisions concerning his rental properties. Which of the following is incorrectly listed as an
6. Bill is a real estate professional and makes all management decisions concerning his rental properties. Which of the following is incorrectly listed as an example of management decisions made by a real estate profes sional? a) Colecting rent b) Approving new tenants c) Deciding on rental terms d) Approving expendtures 7. Frank owns a real property business. Which of the folowing is incorrectly listed as a real property trade or business? a) A business that develops real property b) A business that constructs real property c) A business that acquires real property d) A business that collects trash from real property 8. Lloyd moved to a new main home and changed his former main home to rental use during the year. On his return, where will he deduct his mortgage interest and real estate taxes for his former main home? a) Schedule E b) Schedule A c) Schedules A and E d) Schedule A or E 9. The adjusted basis of Brock's rental property is $135,000, which includes the land value of $29,000. Brock placed his house into service in October of the previous tax year. What is the amount of Brock's depreciation for the current tax year? a) $3,854 b) $4,909 c) $1,023 d) 803 10. William is single and owns a residential rental house. He actively participates in the rental property management. During the tax year, he had a $9,500 rental loss. His only income during the tax year was $54,500 wages on his W-2. If he had no other income or losses for the tax year, what is the amount of total income that Wiliam should report on his return? a) $45,000 b) $49,750 c) $51,500 d) $54,500 11. William actively participates in his rental property. His W-2 wages are $120,000 and his rental loss is $20,000. What is the amount of total income that Wiliam should report on his tax return? a) $100,000 b) $110,000 c) $105,000 d) $117,000
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