Question

-Masoud’s records reflect the following information:

1. Paid $400 dues to a fraternal organization (such as the Elks Club).

2. Donated stock having a fair market value of $5,000 to a qualified charitable organization. He purchased the stock 3 years earlier for $2,500.

3. Paid $1,500 cash to qualified public charitable organizations.

Masoud's adjusted gross income for this year was $50,000. What is the amount of his charitable contribution deduction for the year?

A) $2,500

B) $4,000

C) $5,000

D) $6,500

-Chan reports the following income and loss:

Salary	$ 100,000
Income from activity A	75,000
Loss from activity B	( 40,000)
Loss from activity C	( 60,000)

Activities A, B, and C are all passive activities.

Based on this information, Chan has the following suspended losses

A)

Activity B	Activity C
$40,000	$60,000

B)

Activity B	Activity C
$0	$0

C)

Activity B	Activity C
$10,000	$15,000

D)

Activity B	Activity C
$12,000	$28,000

-Diego has AGI of $125,000 before considering his $50,000 loss from rental property, which he actively manages. How much of the rental loss can Anthony deduct this year?

A) $10,000  

B) $12,500

C) $25,000

D) $40,000

Answer 1

1. Answer is option D $6,500

Donated stock having a fair market value of $5,000 to a qualified charitable organization + Paid $1,500 cash to qualified public charitable organizations = 6500

2. Answer is option C

Total passive loss of 25000 (75000-40000-60000) distributed in the ratio of 2:3

3. Answer is option B

Excess over threshold = $125,000 - $100,000 = $25,000

$25,000 x 50% = $12,500

Actual loss of $50000 is greater than $12,500 limit thus 12500 rental loss will be deducted.