Question

PLEASE TAKE YOUR TIME ANSWERING THESE QUESTIONS AND USE THE MOST CURRENT TAX INFORMATION (2018)

1. A taxpayer suffers a deductible $12,000 non-rental passive activity loss. This is the taxpayer's only passive activity. If the taxpayer's investment in this property is $10,000, the taxpayer's loss deduction under the at-risk rules is $____________.

2. During the year, a taxpayer incurred a $3,000 non-rental passive activity loss. This is the taxpayer's only passive activity. The taxpayer's loss deduction is $____________.

3. A taxpayer files separately from his spouse. If the taxpayer did not live with his spouse at any time during the year, the maximum amount that he can take as a special deduction for active participation in a rental real estate activity is:

		$0.
		$10,000.
		$12,500.
		$25,000.
		$37,500.

4. Which of the following situations do not count as days of personal use by the owner of rental property?

		The taxpayer stays at the house for 10 days while making repairs to the property.
		The taxpayer's sister pays a fair rental price to rent the property for 10 days during the year.
		The taxpayer donates a week of use to a qualified charitable organization.
		All of the above count as days of personal use.
		None of the above count as days of personal use.

Answer 1

1)$10,000 since his share of loss is limited to his investment contribution.

2)$0 , since passive activity losses can be deducted only from passiv incom.

3)$25,000

4)None of the above count as days of personal use.