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Zinaida [17]
3 years ago
15

Noah Yobs, who has $62,000 of AGI before considering rental activities, has $70,000 of losses from a real estate rental activity

in which he actively participates. He also actively participates in another real estate rental activity from which he has $33,000 of income. He has other passive activity income of $20,000. What is Noah's adjusted gross income for the current year
Business
1 answer:
Lelu [443]3 years ago
7 0

Answer: $45,000

Explanation:

Noah is allowed to offset his real estate rental losses from real estate income and passive income.

This means that the loss reduces to:

= -70,000 + 33,000 + 20,000

= -$17,000

Noah's adjusted gross income for the year is:

= AGI + Income from rental activities

= 62,000 - 17,000

= $45,000

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