Reference no: EM131818926

1. Chris spends $800,000 to build a qualified low-income housing project, which is placed in service on January 1, 2012. He financed the project using his personal funds. What is the amount of the low-income housing credit that Chris may claim in 2012 (assuming a rate of 7.96%)? What is the total amount of the credit that Chris may claim as a result of the $800,000 expenditure?

2. Casey owned stock in Jupiter Corporation that he donated to a university (a qualified charitable organization) on December 30, 2012. What is the amount of Casey's deduction, assuming that he had purchased the stock for $10,000 on January 3, 2012, and the stock had a fair market value of $32,000 when he made the donation? Casey's AGI is $400,000.

3. Daren has investments in two passive activities. Activity A, acquired 3 years ago, produces income in the current year of $375,000. Activity B, acquired last year, produces a loss of $475,000 in the current year. At the beginning of this year, Daren's at-risk amounts in Activities A and B are $250,000 and $400,000, respectively. What is the amount of Daren's suspended passive loss with respect to these activities at the end of the current year? (Points : 5)