Answer these following questions

1. John is an individual and is not a real estate professional and does not materially participate in Partnership A or B. John is a limited partner in two real estate partnerships. Partnership A produces a passive loss of $5,000 (allocated to John). Partnership B produces passive income of $3,000 (allocated to John). How does John treat the income/(loss) on his tax return?

A. Deduct $2,000 net loss.

B. Recognize income of $3,000 and dont deduct losses of $5,000.

C. Recognize no income or loss.

D. Deduct $5,000 loss but dont recognize $3,000 income.

E. None of the above.

2. John is an individual and is a real estate professional and materially participates in Partnership A and B. John is a limited partner in two real estate partnerships. Partnership A produces a passive loss of $5,000 (allocated to John). Partnership B produces passive income of $3,000 (allocated to John). How does John treat the income/(loss) on his tax return?

A. Deduct $2,000 net loss.

B. Recognize income of $3,000 and dont deduct losses of $5,000.

C. Recognize no income or loss.

D. Deduct $5,000 loss but dont recognize $3,000 income.

E. None of the above.