Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alice has the following items in this year. Her AGI before any items below is 0 . - Alice has the tax-basis in her Alice

image text in transcribed
Alice has the following items in this year. Her AGI before any items below is 0 . - Alice has the tax-basis in her Alice in the Wonderland LLC of $60K. Alice in the Wonderland LLC has a loss and Alice's share of the loss is $80k. Alice does not actively work for the LLC. - Alice invests in stock and has a $2k long-term capital gain and $3k of short-term capital gain. - Alice has a small online shop which she very rarely manages. Most work is done by a manager and Alice's only job is to collect money from the store. The business generates $10k income - Alice has a spare home in Honolulu which she rents out on Airbnb. The Airbnb rental business has a bad year with a $12k loss. - Alice's main job is being the managing director at Alice-a Keys LLC, a company specializing in producing R\&B music tracks. Alice is also the sole owner of the LLC. In this year, the company generates $25k How much loss from the business activities can Alice deduct in this year? How much of the loss is carried forward (report loss carried forward separately)? Show step-by-step calculation and explanation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

3rd Edition

0139488944, 978-0139488948

More Books

Students also viewed these Accounting questions

Question

What is meant by planning or define planning?

Answered: 1 week ago

Question

Define span of management or define span of control ?

Answered: 1 week ago

Question

What is meant by formal organisation ?

Answered: 1 week ago

Question

What is meant by staff authority ?

Answered: 1 week ago

Question

5. Explain the supervisors role in safety.

Answered: 1 week ago