Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a ($15,000) loss; however, Michelle has sufficient tax basis and at-risk amounts to absorb the loss. If Michelle has $115,000 of salary, $10,000 of long-term capital gains, $3,000 of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct?
A. $11,000.
B. $15,000.
C. $4,000.
D. $0; losses from rental property are passive losses and can only be offset by passive income.
E. None of the choices are correct.
Answer: A
You might also like to view...
Which of the following ratios is used to evaluate a company's liquidity?
A. Current ratio B. Fixed asset turnover ratio C. Return on equity ratio D. Debt-to-assets ratio
Laws and regulations in different countries frequently lead to obligatory design. Giving examples, show how this can have an impact in global marketing
What will be an ideal response?
Acceptance of goods precludes the buyer or lessee from revoking his or her acceptance.
Answer the following statement true (T) or false (F)
In Johnson v. Transportation Agency, Santa ClaraCounty, a female employee was promoted to the position of road dispatcher, despite the fact that a male candidate had scored two points higher on an interview. The county had an affirmative action plan and the plan was taken into account in making the promotion decision. The Supreme Court ruled that:
a. the employer did not violate Title VII because it had an affirmative action plan requiring it to hire a woman for the position b. the employer did not violate Title VII because it had an affirmative action plan that addressed the proven underutilization of women in a moderate, flexible way c. the employer violated Title VII because, despite its affirmative action plan, it was not free to hire a less qualified candidate because of her sex d. the employer violated Title VII because there was no evidence of underutilization of women in the county workforce, requiring affirmative action e. none of the above