Question
Daniella files single. In 2021, she had $80,000 in wages, $16,000 income from a limited partnership, and a $25,000 loss from rental real estate she
Daniella files single. In 2021, she had $80,000 in wages, $16,000 income from a limited partnership, and a $25,000 loss from rental real estate she actively participates in. How can she apply the loss?
She can apply $16,000 of the loss to offset the passive partnership income. Since she actively participated in the rental, she can use the remaining $9,000 rental loss to offset her regular wages.
She can apply $16,000 of the loss to offset the passive partnership income.
She is required to carry the remainder forward to 2022. She can apply $16,000 of the loss to offset the passive partnership income. The remainder of the loss is ignored.
She cannot apply the loss in 2021, but it carries forward to rental activities in 2022.
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
