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 $11,500, and his rental house generated $33,500 in losses. Walter's modified adjusted gross income before passive losses is $141,000.

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. $

c. What may be done with the unused losses, if anything?

The unused losses may be carried tax years to reduce income in those years.

What is the maximum amount a 55-year-old taxpayer and 52-year-old spouse can put into a Traditional or Roth IRA for 2015, assuming they earn $70,000 in total and are not participants in pension plans? $

Telly, age 38, has a $188,800 IRA with Blue Mutual Fund. He has read good things about the management of Green Mutual Fund, so he opens a Green Fund IRA. Telly asked for and received his balance from the Blue Fund on May 1, 2015.

a. What is the total amount Telly will receive from the Blue Fund IRA? $

b. What amount must Telly contribute to the Green Fund IRA to avoid having taxable income and penalties for early withdrawal? $

c. When is the last day Telly can roll over the amount received into the Green Fund IRA and avoid taxation in the current year, assuming no unusual circumstances?

d. What amount will Telly initially receive if the distribution were from his employer's qualified retirement plan?

Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not.

If an amount is zero, enter "0".

a. Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2015 and they had no other income, what is the maximum amount of their deductible contributions to an IRA for 2015?

Phil	$
Linda	$

b. Assuming Phil's wages were $49,000 and Linda's wages were $70,000 for 2015 and they had no other income, what is the maximum amount of their deductible contributions to an IRA for 2015?

Phil	$
Linda	$