Noah Yobs, who has $98,200 of AGI (solely from wages) before considering rental activities, has $88,380...

Noah Yobs, who has $98,200 of AGI (solely from wages) before considering rental activities, has $88,380 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 $49,100 of income. He has other passive activity income of $31,424.

a. What amount of rental loss can Noah use to offset active or portfolio income in the current year?
$

b. Compute Noah’s AGI on Form 1040 [pages 1 and 2; also complete Schedule 1 (Form 1040)] for the current year. Use the minus sign to indicate a loss.

Expert Solution

a) As per the IRS rules related to a passive acitivity, if a loss is incurred from Real estate rent it is considered to be a loss on passive activity and any losses from a passive activity needs to be allowed to settle off from income from passive activity.

If any loss is left out to be settled, even after disposing off the passive losses against passive income. Then the left out loss can be settled off against any other income

Calcualtion of deductable loss of Noah :-		Amount
Income from Passive activities		$31,424
Income from real estate rental activity	$49,100
losses from real estate rental activity	($88,380)
Net losses from real estate rental activity		($39280)
Loss deductible		($7,856)

b) Form 1040 (page1) requires the following personal information which is not given in the question

Filing status - Single /Married filing jointly/Married filing seperately/Head of Household/ Qualifying widower

Personal information - Name & Social Security number

Spouse & social security number (in case of joint return)

Home address

Other Information - Standard deduction / Age/Blindness / Details of dependents

Form 1040 (Page 2), it is the page where all finance related information can be updated, Considering the limited information available in the question, we have tried to fill in the relevant sections on page 2 of Form 1040 and schedule 1

Schedule 1

ekkarill92 answered 2 years ago

Nathan has $62,000 of AGI (solely from wages) before considering rental activities, has $70,000 of losses...

Nathan has $62,000 of AGI (solely from wages) 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 A. What amount of rental loss can Nathan use to offset active or portfolio income in the current year? B. Compute Nathan's AGI on the Form 1040 and...

Noah Yobs, who has $62,000 of AGI before considering rental activities, has $70,000 of losses from...

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?

Problem 11-58 (LO. 3, 8) Mandy, who has AGI of $80,000 before considering rental activities, is...

Problem 11-58 (LO. 3, 8) Mandy, who has AGI of $80,000 before considering rental activities, is active in three separate real estate rental activities and is in the 22% tax bracket. She has $12,000 of losses from Activity A, $18,000 of losses from Activity B, and income of $10,000 from Activity C. She also has $2,100 of tax credits from Activity A. Calculate her deductions and credits allowed and the suspended losses and credits. If an amount is zero, enter...

Basil has $123,000 AGI (before any rental loss). He also owns several rental properties in which...

Basil has $123,000 AGI (before any rental loss). He also owns several rental properties in which he actively participates. The rental properties produced a $36,550 loss in the current year. How much, if any, of the rental loss can Basil deduct in the current year?

Samantha, an executive, has AGI of $100,000 before considering income or loss from her miniature horse...

Samantha, an executive, has AGI of $100,000 before considering income or loss from her miniature horse business. Her outside income comes from prizes for winning horse shows, stud fees, and sales of yearlings. Samantha's home is on 20 acres, half of which she uses for the horse activity (i.e., stables, paddocks, fences, tack houses, and other related improvements). Samantha's office in her home is 10% of the square footage of the house. She uses the office exclusively for maintaining files...

Mr. and Mrs. Revel had $230,400 AGI before considering capital gains and losses. Required: On May...

Mr. and Mrs. Revel had $230,400 AGI before considering capital gains and losses. Required: On May 8, they recognized an $10,900 short-term capital gain. On June 25, they recognized a $17,550 long-term capital loss. What is the amount and character of each carryforward? On February 11, they recognized a $2,190 long-term capital gain. On November 3, they recognized a $1,400 long-term capital loss. What is the amount and character of each carryforward? On April 2, they recognized a $6,075 long-term...

Charlie Brown, who has AGI of $105,000, owns stock in Peanuts Corporation with a basis of...

Charlie Brown, who has AGI of $105,000, owns stock in Peanuts Corporation with a basis of $17,600. He donates the stock to a qualified charitable organization on December 11, 2019. What is the amount of Charlie Brown’s charitable contribution deduction on his 2019 Schedule A, assuming that he purchased the stock on May 30, 2019, and the stock had a fair market value of $24,150 when he made the donation, and assuming that he makes no charitable contribution elections? b....

a. Charlie Brown, who has AGI of $105,000, owns stock in Peanuts Corporation with a basis...

a. Charlie Brown, who has AGI of $105,000, owns stock in Peanuts Corporation with a basis of $17,600. He donates the stock to a qualified charitable organization on December 11, 2019. What is the amount of Charlie Brown’s charitable contribution deduction on his 2019 Schedule A, assuming that he purchased the stock on May 30, 2019, and the stock had a fair market value of $24,150 when he made the donation, and assuming that he makes no charitable contribution elections?...

a) Chuck, who is 33 and single, has an AGI of $377,000 during 2017. He incurred...

a) Chuck, who is 33 and single, has an AGI of $377,000 during 2017. He incurred the following expenses and losses during the year. Compute his allowed itemized deductions for 2017. Medical expenses before 7.5% of AGI limit $42,000 State and Local Income Taxes $8,500 State Sales Tax $2,700 Real Estate Property Tax $7,500 Home Mortgage interest $16,000 Charitable contribution to church $6,750 Casualty loss before 10% limitation (after $100) floor $50,000 Unreimbursed employee expenses subject to 2% of AGI...

In 2018, Ava, an employee, who files single, has AGI of $29,900 and incurred the following...

In 2018, Ava, an employee, who files single, has AGI of $29,900 and incurred the following miscellaneous itemized deductions this year: Union dues and work uniforms: $990 Home office expenses: $2,970 Unreimbursed employee expenses: $1,386 Gambling losses to the extent of gambling winnings: $1,150. What is Ava’s total itemized deduction related to these items?

Question