QUESTION 37 George purchases a plece of real estate for $100,000 cash and a nonrecourse mortgage of $900,000. George's real estate activities constitute an active business This year the business suffers an operating loss of $190,000. As a result George can deduct: Zero $100,000 $150,000 $190,000 None of the above QUESTION 38 The net capital gain included in an individual taxpayer AMT base is eligible for the lower tax rate on net capital gain. This favorable alternative rate applies in calculating both the regular income tax and the AMT True False QUESTION 39 The "at risk rules" limit a taxpayers deduction to the amount for which he is personally at risk in the investment activitiy True False Click Save and Submit to save and submit. Click Save All Answers to save all answers BV 16