Brenda wants to rent out the home she inherited from her parents. Which of the following

questions is incorrect when comparing one rental property to another to determine a fair rental

price?

a) Is it used for the same purpose?

b) Is it approximately the same size?

c) Is it in approximately the same condition?

d) Is it located on the same street?

The Smiths actively participated in their rental property. They have an $11,000 loss on their

rental home and plan to use it to offset other income on their tax return. At what modified AGI

do passive activity losses become totally nondeductible for Married Filing Jointly taxpayers?

a) $ 25,000

b) $100,000

c) $ 75,000

d) $150,000

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 professional?

a) Collecting rent

b) Approving new tenants

c) Deciding on rental terms

d) Approving expenditures