In 2019, Charlie, a single taxpayer, has $100,000 of losses from a rental real estate activity in which he is the sole owner and actively participates. His other income includes $85,000 salary from his job, other rent income of $25,000, and other passive income of $30,000. How much is Charlies AGI for 2019 (assume that Charlie has plenty of at-risk basis, so the at-risk limitations will not limit his ability to deduct a loss), and how much, if any, suspended loss does he have to carry forward to 2020?

Group of answer choices

85,000 AGI, $45,000 suspended loss.

$110,000 AGI, $70,000 suspended loss.

$60,000 AGI, $20,000 suspended loss.

$40,000 AGI, $0 suspended loss.

2.

Larry purchased a computer (5-year property) in August, 2018, for $80,000, to be used 100% for his sole proprietorship. This was the only asset purchased during 2018. He did not elect Sec 179 on this equipment and elected out of additional first year (Bonus) depreciation (i.e., Larry does not want Sec 179 or bonus depreciation). In February, 2019, Larry sold the equipment for $60,000. Compute his adjusted basis for the machinery at the time of sale.

Group of answer choices

$64,000

$51,200

$21,600

$38,400