Category: Writing

1. tests must be met to qualify a loss as deductib le under
the casua lty loss provisions? Discuss the application of each of these tests.
2. Explain how a taxable gain on property can be realized
because of a casua lty event such as a fire or theft. How are these gains
created?

a. What requirements must be met in order for a taxpayer to
deduce up co $25,000 of passive losses from rental real estate activities
against active and portfolio income?
b. What requirements must be met in order for a real estate
rental activity to be considered a real estate business chat is not subject co
the passive loss rules?

Qualified Business Income Deduction. During the current
year, Marilyn earned $115,000 as an accounting consultant.
a. If she has no other income besides a $20,000 capital
gain, how much can she claim as a QBI deduction (please ignore the 50%
self-employment tax deduction)?
b. If she is married and files jointl y with her husband,
who makes $600,000 a year as an attorney, how much can she claim as a QBI
deduction?

1.Explain the difference between materia lly participating
and actively participating in an activity. When is the active participation
rest used?
2. Are the losses suspended under the passive loss rules
lost forever? Explain.

Qualified Business Income Deduction. Cathy is a 50% partner
in the CD partnership, which owns a small manufacturing business. In the
current year, the business had qualified business income of $2.8 million. CD
partnership paid W-2 wages of $900,000 and owns depreciable tangible property
with an unadjusted basis of $1,600,000. What is Carrie’s qualified business
deduction (ignoring the ½ deduction for self-employment taxes)?