b. Refer to the information in part (a) above. If losses were limited by the at-risk and the passive activity loss rules, how much wouldGerald be able to deduct in 2018 and 2019?Of the allowable at-risk loss for 2018, Gerald may deduct :in 2018 due to the passive loss rules and of the allowable at-risk loss from 2019, Gerald may deduct $in 2019 due to the passive loss rules.c. Assuming Gerald has $50,000 income in 2020, (and considering both at-risk and passive activity loss rules), what is the amount ofGerald's suspended losses at the end of 2020?Suspended under the at-risk rules:• Suspended under the passive activity loss rules: $What is his taxable income for 2020?At the end of 2020, what is the amount of Gerald's adjusted basis in the activity? $ Five years ago, Gerald invested $122,000 in a passive activity, his sole investment venture. On January 1, 2018, his amount at risk in theactivity was $24,400. His shares of the income and losses were as follows:YearIncome (Loss)2018($36,600)2019(24,400)202044,400Gerald holds no suspended at-risk or passive activity losses at the beginning of 2018.If an answer is zero, enter "0".a. If losses were limited only by the at-risk rules, how much can Gerald deduct in 2018 and 2019?YearLossAllowedSuspended2018($36,600)2019($24,400)Total

Tax liability: It is the tax debt owe to tax authorities(Government)

Answered: Five years ago, Gerald invested…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On December 12, 2020, Jack contributed a painting to Kyle, LLC that was valued at $100,000 (basis of $5,000) in exchange for a 50% capital and profits interest in the LLC. Josh contributed $100,000 in cash and received a 50% interest in the LLC. On December31, Jack withdrew $50,000 in cash from the LLC and then on January 17, 2021, Josh purchased Jack's entire interest in the LLC for $50,000 and the partnership distributed the painting to Josh on February 15, 2021. What adjustments if any might the IRS make? Explain the consequences of such an adjustment to Josh & Jack and how this could have been prevented.
Kevin bought 260 shares of Intel stock on January 1, 2018 for $74 per share with a brokerage fee of $160. Then, Kevin sells all 260 shares for $87 per share on December 12, 2018. The brokerage fee on the sale was $210. What is the amount of the gain/loss Kevin must report on his 2018 tax return? Multiple Choice $2,640. $3,010. $3,380. $3.750. None of the choices are correct.
12 it revenue to be said in on and the taxpaye laxavie IUI, and in the event is cau. Nadine bought 100 shares of PIE stock for $15 a share on March 14, 2020. On August 1, 2021, she noticed that the stock had increased in value to $25 a share. She decided to sell all of her shares. Nadine's only other income for the year consisted of $68,000 in wages. She will use the single filing status. Nadine's revenue from the sale of stock will increase her taxable income by: $1,000, and this $1,000 will be taxed at a capital gain rate of 15%. O$1,000, and this $1,000 will be taxed at her regular marginal tax rate of 22%. $2,500, and this $2,500 will be taxed at a capital gain rate of 20%. $2,500, and this $2,500 will be taxed at her regular marginal rate of 22%. Mark for follow up
On January 1, 2017, Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $8,000 to BLS in return for a promissory note. BLS generated a $600,000 operating loss in 2017. A. How much of his share of the loss can Leo deduct on his 2017 return? Assume the excess business loss limitation does not apply. B. Compute Leo’s basis in his BLS stock and his BLS note at the end of 2017.
D
Penny owns 501 shares of Mack Co. They have an adjusted cost base of $15.6 per share. On March 31, 2020, Penny sold all of her shares for $13.21 per share. After she sold the shares, the price fell further and on April 15, 2020, Penny purchased 263 of the same class of shares of Mack Co. for $10.67 per share. She was still holding all of the shares at the end of 2020. What is the adjusted cost base of the Mack Co shares Penny holds at the end of 2020?
Felix owns 40% of Unger and at January 1 2022 has a balance in its investment account of 50,000. For full year 2022 Unger has a net loss of 150,000. What is the balance of Felix's investment in Unger at Dec 31, 2022.
Alex purchased $5000 worth of shares in a small biotech company on 1 September 2019. At 31 December 2019, the company declared and paid an interim dividend of $700 which was unfranked. What amount must Alex include in his assessable income for the 2020 year as ordinary or statutory income? a. $700 b. None of the above. c. $5,000 d. $1,000
This year, Marcus sold the following assets: Stock 1 held for 10 years: $368 gain Stock 2 held for 3 years: $9,157 loss What amount of net capital loss can Marcus deduct this year? Enter your answer as a negative number.
Mr CoCo initially held 100 shares of four stocks; however, he sold all the four stocks (100 shares of each stock) on Monday December 7, 2020. The capital gain on the sale of Teladoc Health stock was $25,500. The capital gain on Tesla stock was $10,000, while the capital loss on Walmart stock was $10 per share. The capital loss on the Haliburton stock was $83 per share. What is the taxable gain or loss Mr CoCo should record for the year? (Show your calculations)
Renée sold 500 shares of X corporation that originally cost $19 for $15 per share. The following week, Renée repurchased 200 of those shares for $18 per share. What is Renée's allowable capital loss? A) $1,000. B) $600 C) $0 D) $100
Isaiah purchased shares of ABC stock as follows: 50 shares for $1,550 in 2013. 100 shares for $2,500 in 2015. 125 shares for $3,500 in 2017. In 2019, he sold 150 shares at $45 per share for gross proceeds of $6,750. If he uses the specific identification method to reduce or eliminate the amount of capital gain from this sale, the basis he will use to compute his capital gain or loss is:

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS