Sarah is the owner of an apartment building that produces a $45,000 loss during the year. Her AGI before considering the rental loss is $85,000. She owns no other activities. Because she is an active participant with respect to the rental activity, she may deduct the $45,000 loss in full. True a False eb QUESTION 2 Elm Corporation is on a calendar year basis and purchases new equipment (5-year MACRS property) on March 15, 2019, at a cost of $500,000. Elm also purchases a new machine (7-year MACRS property) on December 17, 2019 at a cost of $790,000. Elm wants to maximize its MACRS deductions in 2019 and has business income for 2019 of $1,000,000 (before Iny 5 179 deduction). How much can Elm claim in total MACRS deduction for 2019? $500,000 $790,000 $1,000,000 $1,020,000 None of the above QUESTIONS QUESTION Greg made the following donations to qualified charitable organizations during the year. $ Basis Fair Market Value Raffle tickets purchased from United Church $ 100 75 Used clothing (all acquired more than a year ago) of taxpayer and his family 1,350 375 Stock in ABC, Inc., held as an investment for fifteen months 12,000 10,875 Stock in MNO, Inc., held as an investment for eleven months 15,000 18,000 Real estate held as an investment for two years 15,000 30,000 Painting held for 5 years 5,000 10,000 Cash I 500 500 Dues paid to Fraternal Lodge 100 100 The used clothing was donated to the Salvation Army; the stock and real estate was donated to State University. The painting and cash were donated to United Church which immediately sold the painting for $10,000 in cash. He has all required documentation for the donations except for the cash donation. All donations were made to 50% qualified charitable organizations. Disregarding any percentage limitations, Max's potential charitable contribution deduction for the year is: $56,250 b.$61,250 $61,750 $61,850. d None of the above. Andy had the following items in 2019: Salary $100,000 Personal use casualty gain $20,000 Personal use casualty loss (after $100 floor) 57,000 Other deductible itemized deductions 14,000 Andy files as head of household (with one dependent child) in 2019. What is his taxable income for 2019? (The basic standard deduction for head of household in 2019 is $18,350). $39,000 $59,000 b $61,000 d 581,650 $101,650 QUESTION 10 Neil purchased a newly constructed apartment building on March 1, 2019 which he fully rented on June 1, 2019. Under MACRS, he must use the half-year convention, True False