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NeTakaya
2 years ago
6

Assuming Gerald has $50,000 income in 2020, (and considering both at-risk and passive activity loss rules), what is the amount o

f Gerald's suspended losses at the end of 2020?
Suspended under the at-risk rules:____________ $
Suspended under the passive activity loss rules: ___________$
What is his taxable income for 2020? ___________$
At the end of 2020, what is the amount of Gerald's adjusted basis in the activity?

Business
1 answer:
Masteriza [31]2 years ago
5 0

Answer:

Please see attachment

Explanation:

Please see attachment

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The dividends paid seem to outweigh the capital loss but we cannot be certain of this unless we know the tax rate being applied to the dividends and because these are usually high, the after tax dividends might have been lower the capital loss of $2.

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