Which of the following can be used to offset a passive loss?

a. Dividend income from stock held as an investment

b. Pension income

c. Passive income such as income from a limited partnership

d. Active income such as wages

e. All of choices are correct but "Active income such as wages".

q6

Arnold purchased two rental properties 6 years ago. He actively participates in their management. During 2018, Arnold had income of $22,000 from one of the rentals. He had a loss from the other rental of $32,000, as well as salary income of $35,000, and dividend income of $2,000. What is Arnold's net passive income or loss deduction?

a. $10,000 net loss

b. $32,000 net loss

c. $8,000 net loss

d. $22,000 net loss

e. None of these choices are correct.

q7

Selma owns a beach cottage that she rents to tourists. In the current year she rented the cottage for 90 days. What is the maximum number of days Selma can use the cottage before her expense deduction will be limited to her gross rental income?

a. 0 days

b. 18 days

c. 14 days

d. 9 days