Respuesta :
Noah can use $17000 in rental loss to counteract active or portfolio income in the existing year.
What is the max amount of renting loss Noah can use to offset?
a.33,000 - 70,000 = -37,000 active action loss
Because his residual income is $20,000, the amount he has to offset his active income is 37,000 minus 20,000 = 17,000
b.Offset for passive process: 20,000 - 20,000 = 0
37,000 - 20,000 = 17,000 dollars surviving to offset active income
62,000 - 17,000 = 45,000
What precisely do you mean when you say "offset active income"?
Passive losses cannot be offset by active income, which premium customers from other investments. This implies you can't apply silent activity losses to income earned if your passive failures exceed your passive income from the passive process. Rental property losses are classified as silent.
Complete question:
Noah Yobs, who has $62,000 in AGI (exclusive of rental activities) has $70,000 in losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity that earns him $33,000 per year. He earns $20,000 from other passive activities.
a. How much rental loss can Noah use to offset active or portfolio income this year?
b. Calculate Noah's AGI for the current year on Form 1040 [pages 1 and 2; also complete Schedule 1 (Form 1040)]. 123-45-6789 is his Social Security number.
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