Question
Brenda has the following gain and losses in 3 passive activities: A B C 2018 $30K gain $33K loss $17K loss 2019 $30K loss $2K
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Brenda has the following gain and losses in 3 passive activities:
A B C
2018 $30K gain $33K loss $17K loss
2019 $30K loss $2K gain $13K gain
How much loss is Brenda able to carryover in 2019 to 2020 for activity A? Assume her AGI is less than 100K before considering these passive activities. HINT: This is a tricky question but dont let it stress you out. Start in 2018 and allocate back to individual activities.
$25,485
$0
$15,000
$30,000
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What would be the maximum loss deduction for active real rental activities if a taxpayers AGI was $110,000?
$0, because passive losses are disallowed unless there is passive income.
$25,000
$5,000
$20,000
$10,000
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A single taxpayer purchases stock directly from a local small business in 2014. At the time the business had less than a million in captial. In 2020 you decide to sell the stock to another investor generating a $2,000 loss. This is your only stock sale for the year. How does this loss affect your 2020 taxes?
$,2,000 long-term captial loss
$2,000 short-term capital loss
$0, loss is not deductible
$2,000 ordinary loss
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You purchase Wachovia stock on September 25th, 2019 for $10,000. Wachovia is completely liquidated (bankrupt) on June 15th, 2020. How does this affect your tax return?
$3,000 short-term capital loss
$3,000 long-term capital loss
$10,000 ordinary loss
$10,000 long-term capital loss
$10,000 short-term capital loss
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Pete works for a real estate company. The company recently acquired a plot of land for $50,000. Pete asked his boss if he could purchase it. The boss said "Pete you are a great employee. You have earned this land. I'll let you have it for $30,000." What happens to the $20,000 discount?
The $20,000 will be included on Pete's return as wages (ordinary income). It also increases Pete's basis in the land to $50,000.
Nothing. This is a gift from his employer. It is excluded from income. Pete's basis in the land remains $30,000.
The $20,000 will be included on Pete's return as a capital gain. It also increases Pete's basis in the land to $50,000.
Brenda has the following gain and losses in 3 passive activities:
A B C
2018 $30K gain $33K loss $17K loss
2019 $30K loss $2K gain $13K gain
How much loss is Brenda able to carryover in 2019 to 2020 for activity A? Assume her AGI is less than 100K before considering these passive activities. HINT: This is a tricky question but dont let it stress you out. Start in 2018 and allocate back to individual activities.
| $25,485 | ||
| $0 | ||
| $15,000 | ||
| $30,000 |
What would be the maximum loss deduction for active real rental activities if a taxpayers AGI was $110,000?
| $0, because passive losses are disallowed unless there is passive income. | ||
| $25,000 | ||
| $5,000 | ||
| $20,000 | ||
| $10,000 |
A single taxpayer purchases stock directly from a local small business in 2014. At the time the business had less than a million in captial. In 2020 you decide to sell the stock to another investor generating a $2,000 loss. This is your only stock sale for the year. How does this loss affect your 2020 taxes?
| $,2,000 long-term captial loss | ||
| $2,000 short-term capital loss | ||
| $0, loss is not deductible | ||
| $2,000 ordinary loss |
You purchase Wachovia stock on September 25th, 2019 for $10,000. Wachovia is completely liquidated (bankrupt) on June 15th, 2020. How does this affect your tax return?
| $3,000 short-term capital loss | ||
| $3,000 long-term capital loss | ||
| $10,000 ordinary loss | ||
| $10,000 long-term capital loss | ||
| $10,000 short-term capital loss |
Pete works for a real estate company. The company recently acquired a plot of land for $50,000. Pete asked his boss if he could purchase it. The boss said "Pete you are a great employee. You have earned this land. I'll let you have it for $30,000." What happens to the $20,000 discount?
| The $20,000 will be included on Pete's return as wages (ordinary income). It also increases Pete's basis in the land to $50,000. | ||
| Nothing. This is a gift from his employer. It is excluded from income. Pete's basis in the land remains $30,000. | ||
| The $20,000 will be included on Pete's return as a capital gain. It also increases Pete's basis in the land to $50,000. |
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
