William is single and owns a residential rental house. He actively participates in the rental

property management. During the tax year, he had a $9,500 rental loss. His only income

during the tax year was $54,500 wages on his W-2. If he had no other income or losses for

the tax year, what is the amount of total income that William should report on his return?

a) $45,000

b) $49,750

c) $51,500

d) $54,500

William actively participates in his rental property. His W-2 wages are $120,000 and his rental

loss is $20,000. What is the amount of total income that William should report on his tax return?

a) $100,000

b) $110,000

c) $105,000

d) $117,000

Leonard made several repairs and improvements to his rental property this year. Which of the

following would not be considered a repair to rental property?

a) Replacing shingles on a roof damaged in a windstorm

b) Replacing washers in a leaking faucet

c) Having vinyl siding installed

d) Having a heat pump serviced