Question
Hi I'm having trouble with the following questions on income tax material. Can you help me pls. Here are the questions. 1-In 2015, Mary invested
Hi I'm having trouble with the following questions on income tax material.
Can you help me pls.
Here are the questions.
1-In 2015, Mary invested $200,000 in a business that is not a passive activity. During 2016, her share of the business loss is $140,000. In 2017, her share of the business loss is $100,000. How much can Mary deduct in 2016 and 2017?
2-Determine the basis of stock in the hands of the shareholder, the basis to the corporation of the contributed property, and the gain, if any, to the shareholder in each of the following independent cases. In all cases, assume that the 80% test is met.
a.Pierre contributes a vehicle with a FMV of $6,000 and basis of $8,000.
b.Marcus contributes land with a FMV of $500,000, basis of $300,000, and debt of $250,000.
c.Same as b. except Marcus also receives cash of $25,000.
d.Patricia contributes an apartment building with a FMV of $200,000, basis of $50,000, and debt of $125,000.
3-Patrick is entitled to receive monthly payments of $1,500 over his life from his employer's qualified pension plan or he can take $1,300 monthly over his life and the life of his wife. The payments begin January 1, 2017. He contributed $85,250 to the plan prior to his retirement. Patrick is 64 and his wife is 62. Using the simplified method, how much of the payments will be included in Patrick's taxable income for 2017 if he chooses to take $1,300 monthly over his life and the life of his wife?
I'd appreciate your help. :)
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