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Hitman42 [59]
1 year ago
11

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

Business
1 answer:
Zolol [24]1 year ago
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

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What is the role of accounting in business?
amid [387]
The role of accounting is to provide you and any other stakeholders with financial information about the company, such as sales revenue, the cost of benefits and the amount you owe your suppliers. Without the information from your accountants, you can't make good financial decisions for your business.
4 0
3 years ago
Why did the framers of the u.s. constitution separate powers and provide for a system of checks and balances?
Scorpion4ik [409]

The framers of the US constitution separate powers and provide for a system of checks and balances in order to guard against a tyrannical government where one particular branch would have too much power.

<h3>What are the functions of the 3 branches of government.</h3>

Apart from the delegate duties that these three branches have in the government, the way that the framers created them was to ensure that they were able to check each other. They provided checks and balance for each other.

The executive had the power to call the other two to other and so also doe the judiciary and the legislative arm of the government so that the people would not experience a dictatorship.

Read more on the constitution framers here: brainly.com/question/1087677

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7 0
2 years ago
Insurance rates are lower for those with poor credit true or false ?
ratelena [41]
False, credit score does affect insurance but just because someone has bad credit doesn’t mean they get lower insurance rates
7 0
3 years ago
On February 1, 2017, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on Januar
Vlad [161]

Answer:

$72,800

Explanation:

Book value:

= Value of bonds + Unamortized bond premium

= $1,000,000 + $92,800

= $1,092,800

Paid at redemption:

= 102% of value of bonds

= 102% × $1,000,000

= $1,020,000

Gain on bond retirement:

= Book value -  Paid at redemption

= $1,092,800 - $1,020,000

= $72,800

Therefore, gain should be recognized on this bond retirement will be $72,800.

7 0
3 years ago
The projected benefit obligation: Multiple Choice contains periodic service cost, accrued interest, revised estimates, plan amen
alukav5142 [94]

Answer:

is the present value of retirement benefits calculated by applying the pension formula in which the actuary includes projected salaries in the pension formula.

Explanation:

The Projected Benefit Obligation (PBO) is the present value of retirement benefits calculated by applying the pension formula in which the actuary includes projected salaries in the pension formula.

PBO is estimated by actuaries by applying the expected future increase in salaries, discount rate and a number of other factors.

To calculate projected benefit obligation, you subtract the pension plan's funded status from the fair value of the plan's assets.

4 0
3 years ago
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