Question

13. Which of the following statements does not apply to a vacation home that is rented out for less than 15 days during the year?

a. None of the rental income is reported

b. Expenses must be divided between personal use and rental use

c. Real estate taxes are treated as an itemized deduction

d. Casualty losses are only deductible if the taxpayer itemizes deductions

e. All of the above apply

14. A single taxpayer has $130,000 of AGI before considering a $40,000 loss from rental real estate activities in which he actively participates. What amount of loss can the taxpayer deduct?

a. $0

b. $10,000

c. $15,000

d. $30,000

e. None of the above

      $25,000 - [($130,000 - ? ) x 50%] = ?.

15. Which of the following accommodations must be present before property can be considered a dwelling unit?

a. A kitchen

b. Sleeping quarters

c. Toilet facilities

d. All of the above must be present in order to provide the basic living accommodations

e. None of the above must be present in order to provide the basic living accommodations

17.  The maximum number of days a dwelling unit can be rented out during the year before the taxpayer has to worry about the rental income possibly becoming taxable is ____________.

18.  Dividends, interest, royalties, and gains from the sale of securities are examples of____________ income.

19. Single taxpayers who actively participate in rental real estate activities can deduct a maximum of ____________ of their passive losses from active and portfolio income.

Answer 1

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