a)

Ella has $105,000 of losses from a real estate rental activity in which she actively participates. She has other rental income of $25,000 and other pas- sive income of $32,000. Her AGI before considering these items of income and loss is $95,000. How much rental loss can Ella deduct against active and portfolio income (ignoring the at-risk rules)? Does she have any suspended losses to carry over? Explain.

b)

At death, Francine owns an interest in a passive activity property (adjusted basis of $160,000, suspended losses of $16,000, and fair market value of $170,000). What is deductible on Francines final income tax return?