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1 year ago

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

1 answer:

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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

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3 years ago

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Sweet has year-end account balances of Sales Revenue $811,419, Interest Revenue $12,690, Cost of Goods Sold $575,593, Administra

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Answer:

Sales Revenue $811,419

Interest Revenue $12,690

Cost of Goods Sold $575,593

Administrative Expenses $189,840

Income Tax Expense $31,877

Dividends $18,984.

<u>Year end Closing Entries</u> Dr. Cr.

Sales revenue $811,419

Interest revenue $12,690

Income Summary $824,109

Income Summary $797,310

Cost of Goods Sold $575,593

Administrative Expenses $189,840

Income Tax Expenses $31,877

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Retained Earning $26,799

Retained Earning $12,690

Dividend $824,109

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3 years ago

A manager at Kohl's discovers that Macy’s has reduced the price of its children's Levi's from $31.99 to $24.99, according to an

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Answer:

a.Reference pricing

Explanation:

Reference price is the price at which a store owner sells a particular product, giving a hefty discount compared to its previously price. Its aim is to get more customers and increase competition.

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3 years ago

North Shore Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost $138,000 D

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Answer:

D. $242,200

Explanation:

The variable cost is that cost which is changes when there is a change in the level of production.

It includes the direct material cost, direct labor cost, factory supplies, etc

The computation of the total variable cost is shown below:

= Direct material cost + direct labor cost + packaging cost

= $85,000 + $138,000 + $19,200

= $242,200

Therefore we included these three cost for the calculation of the variable cost

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3 years ago

Heatherbrae Co. uses the units-of-production method to estimate depreciation. The company purchased a new machine for $48,000 th

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Answer:

Depreciation per unit= 0.133 (Approx)

Explanation:

Given:

Cost of machine = $48,000

Total unit produced = 330,000 units

Residual value of the machine = $4,000.

Depreciation rate per unit = ?

Computation of depreciation rate per unit:

Depreciation per unit = (Cost of machine - Salvage value) / Total unit produced

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Depreciation per unit= ($44,000) / 330,000 units

Depreciation per unit= 0.133 (Approx)

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3 years ago