Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1996. He also acquired a rental house in 2023, which he actively manages. During 2023, Walter's share of the partnership's losses was $23,500, and his rental house generated $50,000 in losses. Walter's modified adjusted gross income before passive losses is $126,000. If an amount is zero, enter "0." Question Content Area a.  Calculate the amount of Walter's allowable loss for rental house activities for 2023.b.  Calculate the amount of Walter's allowable loss for the partnership activities for 2023.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 61P
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Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1996. He also acquired a rental house in 2023, which he actively manages. During 2023, Walter's share of the partnership's losses was $23,500, and his rental house generated $50,000 in losses. Walter's modified adjusted gross income before passive losses is $126,000.

If an amount is zero, enter "0."

Question Content Area

a.  Calculate the amount of Walter's allowable loss for rental house activities for 2023.
b.  Calculate the amount of Walter's allowable loss for the partnership activities for 2023.

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