Problem 4-3 Passive Loss Limitations (LO 4.2) Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985. He also acquired a rental house in 2015, which he actively manages. During 2015, Walter's share of the partnership's losses was $30,000, and his rental house generated $20,000 in losses. Walter's modified adjusted gross income before passive losses is $125,000.

If an amount is zero, enter "0".

a. Calculate the amount of Walter's allowable deduction for rental house activities for 2015. $

b. Calculate the amount of Walter's allowable deduction for the partnership losses for 2015. $

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Problem 4-9 Individual Retirement Accounts (LO 4.6)

Karen, 28 years old and a single taxpayer, has a salary of $30,000 and rental income of $33,000 for the 2015 calendar tax year. Karen is covered by a pension through her employer.

a. What is the maximum amount that Karen may deduct for contributions to her traditional IRA for 2015? $