Helen, a single taxpayer, has modified adjusted gross income (before passive losses) of $126,000. During the tax year, Helen’s r

Question

4 years ago

13

Helen, a single taxpayer, has modified adjusted gross income (before passive losses) of $126,000. During the tax year, Helen’s r

ental house generated a loss of $15,000. Assuming Helen is actively involved in the management of the property, what is the amount of Helen’s passive loss deduction from the rental house?

Business

1 answer:

Ber [7] · Answer 1 · 2022-02-09T05:33:55+03:00

Answer:

So Helen can only make a deduction of $12000 from the value.

Explanation:

The amount is given as

The maximum value of phase out allowance is $25000

The value of loss reduction is calculated for the value of MAGI greater than $100,000 which is $26000 in this case thus the solution is given as

$25000-50% *$26000

=$25000-0.5*$26000

=$25000-$13000

=$12000