Edward is married and files a joint return. He reports the following items of income and loss for the year: Salary $ 120,000 Activity A (passive) 22,000 Activity B (nonbusiness rental real estate) 742,000) Hf Edward actively participates in the management of Activity B, what is his AG for the year and what is the passive loss carryover to nextyear?
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- In the current year, Sandra rented her vacation home for 75 days, used it for personal use for 22 days, and left it vacant for the remainder of the year. Her income and expenses before allocation are as follows: Rental income 11,400 Real estate taxes 1,200 Utilities 1,350 Mortgage interest 3,200 Depreciation 6,000 Repairs and maintenance 810 equired: What is Sandra’s net income or loss from the rental of her vacation home? Use the Tax Court method. Note: Round your intermediate computations to 5 decimal places and final answers to nearest whole dollar value.Jane and Ed Rochester who are filing Married Filing Jointly are married with a 2-year-old child, who lives with them and whom they support financially. They normally take the standard deduction. What would be the 2023 Gross Income if Ed and Jane realized the following items of income and expense: Ed's Salary $ 35,000 Jane's Salary $100,000 Municipal bond interest income $400 Capital Loss on Investments of ($5,000) Ordinary Dividends $2500 Standard Deduction $27,700 Real property tax (from AGI) $10,000 Charitable contributions (from AGI) $7,000 $134,500 O $132,500 $122,500 $106,800Noah Yobs, age 55, who has $57,400 of AGI (solely from wages) before considering rental activities, has $51,660 of losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity from which he has $28,700 of income. He has other passive activity income of $18,368. a. What amount of rental loss can Noah use to offset active or portfolio income in the current year?$fill in the blank 3ed587f89fd0031_1 b. Compute Noah's AGI on Form 1040 [page 1; also complete Schedule 1 (Form 1040)] for the current year. Use the minus sign to indicate a loss.
- 1. Which of the following is generally excluded from gross income? a.Dividends b.Rewards c.Partnership income d.Life insurance proceeds paid to the beneficiary e.None of these choices are correct. 2. Sam died on January 15, 2013 and left his wife, Terry, an insurance policy with a face value of $100,000. Terry elected to receive the proceeds over a 10-year period ($10,000 plus interest each year). This year Terry receives $11,500 ($10,000 proceeds plus $1,500 interest) from the insurance company. How much income must Terry report from this payment? a.$1,500 b.$11,500 c.$0 d.$500 e.None of these choices are correct. 3. Marie had a good year. She received the following prizes and awards: - an iPad from The Famous Daytime Talk Show with a fair market value of $500- lottery winnings of $1,000 received in cash- a plaque worth $25 plus $100 of Godiva chocolate in recognition for 100 days on the job without an accident- a $10,000 cash prize from American IdolHow much of her prizes…Lester rents his vacation home for 6 months and lives in the home during the other 6 months of 2018. The grossrental income from the home is $4,500. For the entire year, real estate taxes are $800, interest is $3,000, utilitiesand maintenance expenses are $2,200, and depreciation expense on the entire home would be $4,000. What isLester's allowable net loss from renting his vacation home?a. $5,500 lossb. $3,000 lossc. $500 lossd. $250 losse. None of the aboveThis year, Leron and Sheena sold their home for $1,036,000 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena? Assume that the couple is married filing jointly. (Leave no answer blank. Enter zero if applicable.) Problem 5-81 Part-a (Algo) a. Leron and Sheena bought the home three years ago for $185,000 and lived in the home until it sold.
- This year, Jong paid $3,000 of interest on a qualified education loan. Jong files married filing jointly and reports modified AGI of $152,000. What is Jong's deduction for interest expense on an educational loan?Jo and Larry own a small office building in Austin that they lease out. This year rental income from the office building was $120,000 and rental expenses were $80,000. On what Form 1040 schedule would Jo and Larry report their rental income and expenses? O Schedule E O Rental expenses are inherently personal and therefore not deductible. O Schedule CSam died on January 15, 2011 and left his wife, Terry, an insurance policy with a face value of $100,000. Terry elected to receive the proceeds over a 10-year period ($10,000 plus interest each year). This year Terry receives $11,500 ($10,000 proceeds plus $1,500 interest) from the insurance company. How much income must Terry report from this payment? a.$1,500 b.$0 c.$500 d.$11,500 e.None of these choices are correct.
- Review the following scenario. Use the information provided to answer questions about the taxpayer’s 2020 return.Liam Hernandez (38) paid $112,000 for a single-family home on July 1, 2020, and immediately placed it in service as a residential rental property. At the time, the land was valued at $10,000. The property generated $6,000 in rental income for the year. Liam’s only expenses consisted of depreciation, $500 in insurance, and $750 in real estate taxes.Liam is not a real estate professional, but he does actively participate in his rental real estate activity. He did not provide any personal services during the year, although he has notified his tenant that he will make minor repairs to the property as needed. Liam has no other passive income or losses. Question 1 What amount should Liam report for his total rental real estate and royalty income? His partially completed Schedule E, Supplemental Income and Loss, is shown below. You may use the form to assist you in answering this…Medical Expenses (LO 5.6) In 2019, Margaret and John Murphy (age 66 and 68, respectively) are married taxpayers who file a joint tax return with AGl of $26,100. During the year they incurred the following expenses: Medical insurance premiums $1,300 Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized 400 Medical care lodging (two people, one night) 65 Hospital bills 2,100 Doctor bills 850 Dentist bills 200 Prescription drugs and medicines 340 Psychiatric care 350 In addition, they drove 80 miles for medical transportation, and their insurance company reimbursed them $800 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy's medical expense deduction. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers.Tyson owns a condominium near Laguna Beach, California. This year, he incurs the following expenses inconnection with his condo:Insurance $ 1,000Mortgage interest 7,500Property taxes 3,200Repairs and maintenance 800Utilities 1,700Depreciation 5,700During the year, Tyson rented the condo for 100 days, receiving $25,000 of gross income. He personallyused the condo for 60 days. Assume Tyson uses the Tax Court method of allocating expenses to rental useof the property. Tyson itemizes deductions, and the sum of his itemized deduction for non-home businesstaxes and the real property taxes allocated to rental use of the home is less than $10,000. What is Tyson'snet rental income for the year (assume this is not a leap year)?