Question
Janelle owns an apartment building and incurred a $35,000 rental loss. Janelle has no other passive activities and is not a real estate professional. She
Janelle owns an apartment building and incurred a $35,000 rental loss. Janelle has no other passive activities and is not a real estate professional. She actively participates in renting the building. Her income is:
Form W-2 wages$30,000
Schedule C proprietorship90,000
Schedule E rental loss( 35,000)
IRA deduction2,000
What amount of rental loss is allowed?
Instructions:Explain the rule on rental loss and provide the calculation and answer of your decision.
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
