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

Which one of the following is not a part of the business case for why companies should act in a socially responsible manner? A.

Amanda [17]

Answer:

Every business has a moral duty to be a good corporate citizen.

Explanation:

Businesses are formed to make profit, and this is the primary goal of businesses. So when making a business case for a company to act in a socially responsible manner, the benefit to the business as profits is the primary consideration.

If it is argued that every business has a moral duty to be a good corporate citizen, it does not translate to profits or benefit for the company.

So this is a weak argument when a business case is being created for why businesses should act in a socially responsible manner.

3 0

3 years ago

A questionnaire was given to students. the first question asked was "how stressed have you been in the last week on a scale of

algol [13]

The question is: Which scale rating describes the greatest number of student and how many student responded with this rating.
From the frequency distribution table attach to the question, the scale rating with the highest number of student is 7 out of 10 and the number of students that responded with this rating is 27 students.

7 0

3 years ago

31. A portfolio manager in charge of a portfolio worth $10 million is concerned that stock prices might decline rapidly during t

Angelina_Jolie [31]

Answer:

200

Explanation:

Base on the scenario been described in the question, the position required if the portfolio has a beta 1 is been calculated as follows .

number of contracts required is

Number of contract =10,000,000/(500×100)

Number of contract =10,000,000/50,000

Number of contract =200.

A long put position is needed because the contracts must provide a positive payoff when the market reduces.

6 0

3 years ago

3. According to their comparative advantage, Alphaland specializes in axes and Betaville specializes in batons. Alphaland will t

Nady [450]

Answer: Option (C) is correct.

Explanation:

A country has a comparative advantage in producing a commodity if the opportunity cost of producing that good is lesser in that country as compared to the other country.

From the information given in the question, it is clear that Alphaland has a comparative advantage in axes and Betaville has a comparative advantage in batons.

Hence, Alphaland will trade axes for batons only if the price of batons is lower than the cost of producing it in Alphaland. So that there is a possibility mutually beneficial trade.

7 0

3 years ago

During the year, Trombley Incorporated has the following inventory transactions.

Furkat [3]

Answer:

a. Ending inventory = $162, Cost of Sales = $593, Gross Profit = $478

b. Ending inventory = $227, Cost of Sales = $528, Gross Profit = $543

c. Ending inventory = $492.30, Cost of Sales = $557.94 , Gross Profit = $513.06

d. FIFO

Explanation:

FIFO

Ending inventory = 18 units × $9 = $162

Total = $162

Cost of Sales = 11 units × $13 = $143

16 units × $12= $192

21 units × $11 = $231

3 units × $9 = $27

Total = $593

Gross Profit = Sales less Cost of Sales

= (51 units × $21) - $593

= $1,071 - $593

= $478

LIFO

Ending inventory = 11 units × $13 = $143

7 units × $12 = $84

Total = $227

Cost of Sales = 9 units × $12 = $108

21 units × $11 = $231

21 units × $9 = $189

Total = $528

Gross Profit = Sales less Cost of Sales

= (51 units × $21) - $528

= $1,071 - $528

= $543

Weighted-average cost

First determine the average cost.

Average cost = Total Cost / Total units

= $ 755 / 69

= $10.94

Ending inventory = Units Remaining × Average Price

= 45 units × $10.94

= $492.30

Cost of Sales = Units Sold × Average Cost

= 51 units × $10.94

= $557.94

Gross Profit = Sales less Cost of Sales

= (51 units × $21) - $557.94

= $1,071.00 - $557.94

= $513.06

8 0

3 years ago