Amount of the loss can carlos deduct

Assignment Help Management Theories

Reference no: EM131004435

Carlos is a 25% owner of CEBJ Builders, a company that specializes in residen- tial construction. The other 75% of CEBJ is owned by his three brothers. During the year, Carlos spends 1,800 hours managing the operations of CEBJ. He also is the 100% owner of four rental properties and spends 125 hours a year maintaining the properties, more than any other individual. During the current year, the four prop- erties generate a loss of $18,500. His adjusted gross income before considering the rental loss is $118,000. What amount of the loss can Carlos deduct in the current year?

Assume that Carlos's ownership interest in CEBJ is 4%. What amount of the loss can he deduct?
Assume that Carlos spends only 600 hours managing CEBJ Builders and 1,200 hours managing a microbrewery he acquired earlier in the year. What amount of the loss can he deduct?
Assume that Carlos hires his brother-in-law to help him manage the properties. Carlos spends 125 hours and his brother-in-law spends 225 hours managing the rental properties. What amount of the loss can Carlos deduct?

Reference no: EM131004435

Questions Cloud

Determine the project ror : The results are estimated to positively impact net cash flow starting 6 years from now and for the foreseeable future at an average level of $6 million per year. As an initial screening for economic viability, determine both the no-return and i ..

Identify risks which may impede or affect your ability : Identify risks and potential issues which may impede or affect your ability to introduce smart handheld devices - Your journal task is to present various factors that you need to consider while planning to introduce smart handheld devices

Participates in the rental activity : What is Mort's adjusted gross income for 2009, 2010, and 2011 if he qualifies as a real estate professional? What is Mort's adjusted gross income for 2009, 2010, and 2011 if he actively participates in the rental activity?

Determine sensitivity to variation in life : The VP of Manufacturing is concerned about the project's economic viability if the equipment life varies from the 10-year estimate, and the VP of Marketing is concerned about sen- sitivity to the revenue estimate if the annual decrease is larger o..

Amount of the loss can carlos deduct : Assume that Carlos hires his brother-in-law to help him manage the properties. Carlos spends 125 hours and his brother-in-law spends 225 hours managing the rental properties. What amount of the loss can Carlos deduct?

Find a formula for the volume of the mixture at time t : Find a formula for the volume V(t) of the mixture at time t minutes. Find a differential equation that tells the rate of change of the amount of alcohol A(t) at time t minutes.

Calculating the adjusted gross income : Assume the same facts except that Aretha's adjusted gross income before the rental loss is $145,000 and Betina's is $140,000. How much of the loss can Aretha deduct? How much of the loss can Betina deduct?

How many tons per year must be finished in order : The machine will have an annual maintenance and operation cost of $1500. All projects are expected to generate a return of 10% per year. How many tons per year must be finished in order to justify the higher purchase cost of the auto-feed mac..

Income or loss from bearcave : Assume that Sidney and Gertrude materially participate in Bearcave for each year (2007-2010). What amount can they recognize as income or loss from Bearcave for each year (2007-2010)?

User Account

All Pages