In the current year, Norris, an individual, has $63,000 of ordinary income, a net short-term capital loss (NSTCL) of $8,700 and a net long-term capital gain (NLTCG) of $4,100. From his capital gains and losses, Norris reports:

Multiple Choice

• an offset against ordinary income of $8,700.

• an offset against ordinary income of $3,000 and an NSTCL carryforward of $5,700.

• an offset against ordinary income of $4,100 and an NSTCL carryforward of $4,600.

• an offset against ordinary income of $3,000 and an NSTCL carryforward of $4,600.

• an offset against ordinary income of $3,000 and an NSTCL carryforward of $1,600.

Alain Mire files a single tax return and has adjusted gross income of $294,000. His net investment income is $63,000. What is the additional tax that Alain will pay on his net investment income for the year?

Multiple Choice

• $0.

• $2,394.

• $3,572.

• $1,178.

• None of the choices are correct.

Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a ($22,000) loss; however, Michelle has sufficient tax basis and at-risk amounts to absorb the loss. If Michelle has $129,000 of salary, $11,400 of long-term capital gains, $4,400 of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct?

Multiple Choice

• $0; losses from rental property are passive losses and can only be offset by passive income.

• $19,400.

• $2,600.

• $22,000.

• None of the choices are correct.