Noah 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. **Transcription of IRS Form 1040 (2020) - Educational Overview****Standard Deduction Information:**- **Single or Married Filing Separately:** $12,400- **Married Filing Jointly or Qualifying Widow(er):** $24,800- **Head of Household:** $18,650- *If you checked any box under Standard Deduction, see instructions.***Income and Adjustments:**- **Line 7:** Capital gain or (loss). (Attach Schedule D if required).- **Line 8:** Other income from Schedule 1, line 9.- **Line 9:** Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8 to obtain your *total income*.- **Adjustments to Income (Line 10):** - **10a:** From Schedule 1, line 22. - **10b:** Charitable contributions if you take the standard deduction (see instructions). - **10c:** Add lines 10a and 10b for *total adjustments to income*.- **Line 11:** Subtract line 10c from line 9 for your *adjusted gross income*.**Deductions:**- **Line 12:** *Standard deduction or itemized deductions* (from Schedule A).- **Line 13:** Qualified business income deduction (Attach Form 8995 or Form 8995-A).- **Line 14:** Add lines 12 and 13.- **Line 15:** *Taxable income* (Subtract line 14 from line 11. If zero or less, enter -0-).**Additional Information:**- *For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.*- **Form 1040 (2020)** - Cat. No. 11320B**Schedule 1 (Form 1040) - Additional Income and Adjustments to Income:**- Attach to Form 1040 or 1040-SR, or 1040-NR.- *For instructions and the latest information, visit* [www.irs.gov/Form1040](http://www.irs.gov/Form1040).**Identification Details:**- Name(s) Shown on Form: *Noah Yobs*- Your Social Security Number: * # Additional Income and Adjustments to Income## Form 1040 (2020 Edition)**Department of the Treasury - Internal Revenue Service**This document is designed to be attached to Form 1040, 1040-SR, or 1040-NR. For detailed instructions and the latest information, visit [www.irs.gov/Form1040](http://www.irs.gov/Form1040).### Taxpayer Information**Name(s) shown on Form 1040, 1040-SR, or 1040-NR:** Noah Yobs**Social Security Number:** 123-45-6789### Part I - Additional Income1. **Taxable refunds, credits, or offsets of state and local income taxes**2. **Alimony received** - 2a. Alimony received - 2b. Date of original divorce or separation agreement3. **Business income or loss** - Attach Schedule C4. **Other gains or losses** - Attach Form 47975. **Rental real estate, royalties, partnerships, S corporations, trusts, etc.** - Attach Schedule E6. **Farm income or loss** - Attach Schedule F7. **Unemployment compensation**8. **Other income** - List type and amount9. **Total Additional Income** - Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8.### Part II - Adjustments to Income10. **Educator expenses**11. **Certain business expenses of reservists, performing artists, and fee-basis government officials** - Attach Form 210612. **Health savings account deduction** - Attach Form 888913. **Moving expenses for members of the Armed Forces** - Attach Form 3903This form helps taxpayers report additional sources of income and adjustments, guiding through applicable schedules and forms for each category. The information gathered here feeds into overarching tax documentation required for the IRS.

Passive activity loss ca be generally offset against passive income only, carry forward indefinitely…

Answered: Noah Yobs, age 55, who has $57,400 of…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q