Question

Mr. and Mrs. Overtaxed have the following incomes and losses from their various real estate investments for 20XX.

•           20% ownership in five-unit apartment complex.

                        Overtaxeds’ share of 20XX loss:                                      (15,000)

•           20% interest in strip shopping center that is fully rented.

Overtaxeds’ share of 20XX loss:                                        (5,000)

•           5% ownership of a commercial property.

Overtaxeds’ share of 20XX loss:                                      (16,000)

•           10% limited partnership's interest in a real estate limited partnership.

Overtaxeds’ share of 20XX loss:                                      (20,000)

Which activities of Mr. and Mrs. Overtaxed may be subject to the real estate provisions of §469(i)?

Answer 1

As Per the given analysis Mr & Mrs Overtaxes have some incomes and Losses in real estate Investments and which were explained as per the provions

IRC 469(i)(2) claims that the aggregate amount in relation to real estate shall not exceed $25,000, whereas IRC 469(i)(6)(A) claims that an individual shall own at least 10 percent of all interests in the activity during the taxable year.

In this case, Mr. and Mrs. Overtaxed may be subject to the real estate provisions of IRC 469(i) through the following:

20% interest in strip shopping center, fully rented (5,000)

10% limited partnership’s interest in real estate (20,000)

Total losses from real estate investments (25,000)