All categories

1 year ago

describe the two eligibility requirements to qualify for deducting losses generated from real estate activities.

1 answer:

7 0

Two exceptions to the special passive activity rule for real estate activities provide the whole or partial offset of real estate rental losses against active or portfolio income, even when the business is otherwise regarded as a passive activity.

<h3>Which rules regarding passive activities for rental revenue are exceptions?</h3>

You have a stake in the yearly commerce or economic activities.
During the current tax year or at least 2 of the 5 tax years prior, the rental property was utilized primarily in that trade or company.

<h3>Only real estate is subject to passive loss restrictions, right?</h3>

Generally speaking, the following actions can result in passive losses (and income): leasing of equipment. Rental property (though there are some exceptions) a farm or a sole proprietorship in which the taxpayer has no substantial interest.

<h3>How can passive income be balanced?</h3>

Selling off your rental properties will help you make up for your passive losses. You don't actually have to sell the property that's causing the losses to balance them effectively. Any passive income will be offset by losses.

Learn more about special passive activity rule: brainly.com/question/28137310

#SPJ4

You might be interested in

Platforms often store personal data subject to security clauses in data protection regulations such as GDPR or the Data Protecti

storchak [24]

Answer: by keeping regular backup of collected data in case of data loss.

Explanation:

Platforms often store personal data subject to security clauses in data protection regulations such as GDPR or the Data Protection Act.

It should be noted that when this type of sensitive data is hosted on a platform, an organization account for these considerations by keeping regular backup of the data collected. This is essential in a situation where there's data loss so that the day can be gotten from the backup.

7 0

3 years ago

A good rule of thumb is to spend no more than __% of your monthly gross income on rent. 20 25 30 40

Alexxandr [17]

45% of your monthly come on rent

7 0

3 years ago

What is a disadvantage for a company that goes public

aleksandrvk [35]

I think the most appropriate answer would be C.

I hope it helped you!

5 0

3 years ago

Perfect competition is the term used to describe: an industry in which a few price-taking firms produce identical products. an i

Olenka [21]

An industry in which numerous price-taking firms produce identical products.

8 0

3 years ago

Given below is a numbered list of cost terms. For each of the definition statements that follow, place the number of the cost te

leva [86]

Answer:

The correct answers are the following:

a - 4 Sunk

b - 5 Opportunity

c - 3 Fixed

d - 2 Variable

e - 6 Incremental

f - 1 Recurring

g - 7 Direct

h - 8 Non-recurring

Explanation:

a) <em>Sunk costs</em> are those that have already occurred in the past and they can not be recovered again so therefore that they are not relevant at the time of taking decisions regarding the futue.

b) <em>Opportunity costs</em> are those that try to measure and show the sacrifice done at the time of making a decision when that sacrifice represents the best second option that the person could have done.

c) <em>Fixed costs</em> are those that are always the same amount and do not change with the activity level of the production of the company.

d) <em>Variable costs</em> are those that do change with the amount of activity level that the company has during the production process.

e)<em> Incremental costs</em> are those that increase the cost level of the production while the output level increases as well, so they are a concept on the margin.

f) <em>Recurring costs</em> are those that tend to repete continously in the production process so the company already know how much the amount of the cost is.

g) <em>Direct costs</em> are those that the company associates with the production process regarding the commodities and all the primary sources that are needed to produce the good and therefore that they impact directly in the production and in the cost of the final product.

h) <em>Non-recurring</em> costs are those that the company are not familiar with due to the fact that they do not repete often and therefore tend to happen once in a while.

4 0

3 years ago