QUESTION 9

1. Wayne owns a small apartment building that produces a $15,000 loss during the year. His AGI before considering the rental loss is $85,000. Because Wayne is an active participant with respect to the rental activity, he may deduct the $15,000 loss.

   True

   False

1.5 points

QUESTION 10

1. Eric pays $50,000 for a 50% interest in a partnership (not real estate). The partnership borrows $80,000 on a non-recourse note. Eric's at-risk amount is $90,000.

   True

   False