Question

Use the following for questions 2-4. Ray owns several parcels of rental real estate, and he actively participates in managing the properties. His total loss from these activities in 2017 is $30,000. His AGI for 2017 is $110,000.

2.      What is the allowable deduction from these properties in 2017?

a.      $0

b.      $15,000

c.      $20,000

d.      $30,000

3.      How much of the disallowed loss from rental real estate activities may be carried over to future years?

a.      0%

b.      10%

c.      50%

d.      100%

4.      For how many years may the disallowed loss be carried forward?

a.      The disallowed loss may not be carried forward.

b.      The disallowed loss may be carried forward for 15 years.

c.      The disallowed loss may be carried forward for 15 years, but only after it has been carried back for 3 years.

d.      The disallowed loss may be carried forward indefinitely.

Answer 1

SOLUTION:-

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