b. Refer to the information in part (a) above. If losses were limited by the at-risk and the passive activity loss rules, how much wouldGerald be able to deduct in 2018 and 2019?Of the allowable at-risk loss for 2018, Gerald may deduct :in 2018 due to the passive loss rules and of the allowable at-risk loss from 2019, Gerald may deduct $in 2019 due to the passive loss rules.c. Assuming Gerald has $50,000 income in 2020, (and considering both at-risk and passive activity loss rules), what is the amount ofGerald's suspended losses at the end of 2020?Suspended under the at-risk rules:• Suspended under the passive activity loss rules: $What is his taxable income for 2020?At the end of 2020, what is the amount of Gerald's adjusted basis in the activity? $ Five years ago, Gerald invested $122,000 in a passive activity, his sole investment venture. On January 1, 2018, his amount at risk in theactivity was $24,400. His shares of the income and losses were as follows:YearIncome (Loss)2018($36,600)2019(24,400)202044,400Gerald holds no suspended at-risk or passive activity losses at the beginning of 2018.If an answer is zero, enter "0".a. If losses were limited only by the at-risk rules, how much can Gerald deduct in 2018 and 2019?YearLossAllowedSuspended2018($36,600)2019($24,400)Total

Tax liability: It is the tax debt owe to tax authorities(Government)

Answered: Five years ago, Gerald invested…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 32CE

See similar textbooks

Similar questions

Five years ago Gerald invested $198,000 in a passive activity, his sole investment venture. On January 1, 2018, his amount at risk in the activity was $39,600. His shares of the income and losses were as follows: Year Income (Loss) 2018 ($59,400) 2019 (39,600) 2020 59,600 Gerald holds no suspended at-risk or passive activity losses at the beginning of 2018. a. If losses were limited only by the at-risk rules, how much can Gerald deduct in 2018 and 2019? Year: 2018 Loss: ($59,400) How much is allowed? How much is suspended? Year: 2019 Loss:($39,600) How much is allowed? How much is suspended? What is the total amount suspended? b. Refer to the information in part (a) above. If losses were limited by the at-risk and the passive activity loss rules, how much would Gerald be able to deduct in 2018 and 2019? c. Assuming Gerald has $59,600 income in 2020, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald's…
Five years ago Gerald invested $130,000 in a passive activity, his sole investment venture. On January 1, 2019, his amount at risk in the activity was $26,000. His shares of the income and losses were as follows:
Fiona purchased 200 shares of Oxygon stock for $11 a share on August 11, 2020. On July 28, 2021, the price had fallen to $8. Concerned that the price might decline further, Fiona sold all her shares that day. She later regretted this move, and on August 7, 2021, she repurchased the stock when it was $10 a share. What is Fiona's 2021 capital gain or loss on these transactions? No gain or loss will be reported. $100 short-term loss. $200 short-term loss. $300 short-term loss.
On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10, 2021, he purchases 100 shares of the same stock for $82,000. Assuming that Kramer's adjusted basis for the stock sold is $89,000, what is his recognized gain or loss? Kramer's recognized loss is $________. (Side note: 120000 & -12000 is wrong) What is his basis for the new shares? $90,000.
Alex purchased $5000 worth of shares in a small biotech company on 1 September 2019. At 31 December 2019, the company declared and paid an interim dividend of $700 which was unfranked. What amount must Alex include in his assessable income for the 2020 year as ordinary or statutory income? a. $700 b. None of the above. c. $5,000 d. $1,000
Kim purchased 500 shares in Prompt Messenger Services for $12,000 on November 21, 2021. The company went bankrupt on June 12, 2022, with no hope of recovery for the shareholders. On what date is the stock deemed to be worthless and what is the nature of the loss?
Jackson invested $192,000 in a passive activity five years ago. On January 1, 2018, his at-risk amount in the activity was $45,500. His share of the income and losses in the activity were $52,650 loss in 2018, $20,350 loss in 2019, and $80,750 gain in 2020. Required: How much can Jackson deduct in 2018 and 2019? What is his taxable income from the activity in 2020? Keep in mind the at-risk rules as well as the passive loss rules.
On April 10, 2019, Shen paid $48,650 for corporate stock. Shen died on July 14, 2021, when the stock was valued $29,190, and his son, Mijo, inherited it. On November 12, 2021, Mijo sold the shares for $34,055. What is the size and nature of Mijo's gain or loss? He has a long-term financial gain of $.
On April 18, 2020, Jane Juniper purchased 30 shares of Bryan Corp. stock for $210, and on September 29, 2020, she purchased 90 additional shares for $900. On November 28, 2020, she sold 48 shares, which could not be specifically identified, for $576 and on December 8, 2020, she sold another 25 shares for $188. What is her recognized gain or loss?
Jackson invested $190,000 in a passive activity five years ago. On January 1, 2018, his at-risk amount in the activity was $45,000. His share of the income and losses in the activity were $52,000 loss in 2018, $20,000 loss in 2019, and $80,000 gain in 2020. Required: a. How much can Jackson deduct in 2018 and 2019? b. What is his taxable income from the activity in 2020? Keep in mind the at-risk rules as well as the passive loss rules. Complete this question by entering your answers in the tabs below. Required A Required B How much can Jackson deduct in 2018 and 2019? (Leave no cells blank be certain to enter "0" wherever required.) 2019 2018 0 $ 73,000 Deduction $ Jackson invested $190,000 in a passive activity five years ago. On January 1, 2018, his at-risk amount in the activity was $45,000. His share of the income and losses in the activity were $52,000 loss in 2018, $20,000 loss in 2019, and $80,000 gain in 2020. Required: a. How much can Jackson deduct in 2018 and 2019? b. What…
In 2022, Wilbur had the following transactions: Alimony paid (settled in 2017) Commissions earned as a salesperson Capital loss on stock investment Gifts received from mother Wilbur's AGI for 2022 is: 1. $43,400 2. $45,400 3. $49,400 4. $51,400 5. None of the above $3,600 $54,000 $1,000 $6,000
On September 6, 2016, Andrew, who is married, purchased Allstar Corporation stock for $220,000 from the corporation. The Allstar Corporation’s stock qualified as Section 1244 stock. On November 20, 2019, Andrew sold the Allstar stock for $100,000. How should Andrew report his realized gain or loss on the sale of the Allstar Corporation stock? Question 2 options: a) Andrew realized a $120,000 long term capital loss. b) Andrew realized a $50,000 Section 1244 ordinary loss and a $70,000 long term capital loss. c) Andrew realized a $100,000 Section 1244 ordinary loss and a $20,000 long term capital loss. d) Andrew realized a $120,000 Section 1244 ordinary loss.

SEE MORE QUESTIONS

Recommended textbooks for you

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SEE MORE TEXTBOOKS