Calculating the adjusted gross income

Assignment Help Management Theories

Reference no: EM131004433

Aretha and Betina own a 10-unit apartment complex. Aretha owns a 60% inter- est in the apartment complex, and Betina has a 40% interest. Aretha is an investment banker and spends 120 hours helping to manage the apartment complex. Betina is the co-owner of a real estate agency where she works 1,600 hours a year. She also spends 520 hours managing the apartment complex. During the current year, the apartment complex generates a loss of $24,000. Aretha's adjusted gross income before considering the loss from the apartment complex is $175,000, and Betina's is $162,000. How much of the loss can Aretha deduct? How much of the loss can Betina deduct?

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?
Assume the same facts as in part a, except that the apartment complex qualifies under federal guidelines as low-income housing. How much of the loss can Aretha deduct? How much of the loss can Betina deduct?

Reference no: EM131004433

Questions Cloud

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)?

What is the taxpayer taxable income : What is the taxpayer's taxable income (loss) if The taxpayer is a publicly held corporation? The taxpayer is a closely held corporation?

Create a webpage or blog : Your task is to create a webpage or Blog that very clearly and concisely reports on selected aspects of the innovation capabilities of the organisation

User Account

All Pages