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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.

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For each of the following cases determine the ending balance in the inventory account. (Hint: First, determine the total cost of

Anna71 [15]

Answer:

The ending balance in the inventory account is $37,960

Explanation:

For computing the ending balance, first we have to compute the cost of inventory which is available for sale

So, the cost of inventory which is available for sale equals to

= Beginning balance of inventory + purchased - purchase return - purchase discount + in transportation cost

= $45,500 + $91,500 - $6,100 - $860 + $1,220

= $131,260

Now the ending inventory would be

= Cost of inventory which is available for sale - Cost of goods sold

= $131,260 - $93,300

= $37,960

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3 years ago

USA TEST PREP HELP ILL GIVE BRAINLIEST. If both monetary policy and fiscal policy were used at the same time to contract the eco

algol [13]

Answer:

I am unsure of the answer but it can be narrowed down to B D or E because the GDP would decrease.

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2 years ago

Everything else held constant, when prices in the art market become more uncertain:______.

Ira Lisetskai [31]

the demand curve for the bonds shifts to the left and the interest rate rises

when the market is volatile , then the risk associated with the bond is very high . there is an inverse relation ship between risk and demand. when the risk is high, the demand for the bond decrease and the demand curve shifts to the left. also there is an inverse relation ship between the demand and interest rate. hence, when the demand decrease , the interest rate on the bond rises

the explanation for correct option because of an inverse relationship between the risk demand and demand interest rate, the interest rate cant fall when the demand curve shift to the left and when the risk is high , the demand curve shifts to the left only, not to the right .

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8 0

2 years ago

Inflation is 20 percent. Debt is $2 trillion. The nominal deficit is $300 billion. What is the real deficit or surplus

algol13

Answer:

Real deficit is -$100 billion.

Explanation:

Since we have a nominal deficit in the question, what we are to calculate is the real deficit.

The real deficit can be described as the actual or nominal deficit that has been adjusted for the effect of inflation on the debt. Therefore, the real deficit can be calculated using the following formula:

Real deficit = Nominal deficit - (Debt * Inflation rate) ................. (1)

From the question, we have:

Inflation rate = 20%

Debt = $2 trillion = $2,000,000,000,000

Nominal deficit = $300 billion = $300,000,000,000

Substituting the values into equation (1), we have:

Real deficit = $300,000,000,000 - ($2,000,000,000,000 * 20%)

Real deficit = $300,000,000,000 - $400,000,000,000 = -$100,000,000,000 = -$100 billion

Therefore, real deficit is -$100 billion.

4 0

3 years ago

2)Torres Inc. recently began production of a new product, the halogen light, which required the investment of $600,000 in assets

madreJ [45]

Answer:

The selling price is $99

Explanation:

The selling price of the product can be computed by adding required profit margin to the unit cost of the product.The required profit margin is the 10% return on invested assets.

Total variable cost $59*10000 =$590,000

Fixed expenses ($180,000+$60,000) =$240,000

desired profit margin(10%*$600,000) =$60,000

Total sales revenue =$990,0000

price per unit=$990,000/10000=$99

The cost-plus approach to product pricing gives $99

3 0

4 years ago