Memorandum-investment activities affect taxable income

Reference no: EM13312964

Please prepare a memorandum for Ms. Rollison, a client, to explain how her investment activities affect her taxable income in 2011, and the anticipated effect in 2012.The facts are as follows: We are in the process of filing the 2011 federal income tax return and planning for the 2012 federal income tax returns for our client, Ruth Rollison. In 2011, Ruth had income of $100,000 from both portfolio and active income sources. The passive income was the result of her ownership interests in two passive activities. For passive activity one (PA1), Ruth had a net loss of $20,000 and for passive activity two (PA2) she had net income of $2,000.What is the effect of these passive activities on her 2011 income?Please provide a schedule within the memo that shows the activities and the amount included in her Adjusted Gross Income in 2011. In 2012, Ruth has purchased an interest in passive activity three (PA3).The results of her three passive activities in 2012 are expected to be the following: PA1 <$10,000> PA2 3,000 PA3 30,000 What will be the effect of the Ruth’s passive activities on her 2012 taxable income? Please provide a schedule that shows the activities and the amount that should be included in her 2012 Adjusted Gross Income from her passive investments. What if PA3 is expected to generate income of 10,000?What will the affect be on Ruth’s 2012 adjusted gross income

Reference no: EM13312964

Questions Cloud

Five interior angles of a six-sided closed polygon traverse : Five interior angles of a six-sided closed polygon traverse are measured as: A=117°20’33”, B=119°47’50”, C=66°36’29”, D=171°52’14”, E=92°55’18”. The angle at F was not measured. If all measurements are assumed to be correct what is the value of angle..

Differences between system safety and industrial safety : What steps make up the product life cycle? Include examples of the activities that occur during each step. What is the importance of the system safety function to an organi- zation? What are the differences between system safety and industrial safety..

In covalent molecules such as methane : In covalent molecules such as methane. Metals and polymers do/do not (circle one) interact with their environment.

What is the maximum deductible contribution : What is the maximum deductible contribution that can be made to one or more deductible IRAs in each of the following instances?

Memorandum-investment activities affect taxable income : Please prepare a memorandum for Ms. Rollison, a client, to explain how her investment activities affect her taxable income in 2011, and the anticipated effect in 2012.The facts are as follows: We are in the process of filing the 2011 federal income t..

In cost estimation-the total cost of a project : In cost estimation, the total cost of a project is the sum of component task costs. each of these costs is a random variable with a probability distribution. It is customary to obtain information about the total cost distribution by adding together c..

Suppose the expected tensile strength : Suppose the expected tensile strength of type-A steel is 105 ksi and the standard deviation of tensile strength is 8 ksi. For type-B steel, suppose the expected tensile strength and standard deviation of tensile strength are 100 ksi and 6 ksi, respec..

Discuss cultural variations of health practices : Discuss cultural variations of health practices that can be misidentified as child abuse in school age.Describe the reporting mechanism in your state and nurse responsibilities related to the reporting of suspected child abuse. Include in-text citati..

Child abuse and maltreatmen : Child abuse and maltreatment is not limited to a particular age and can occur in the infant, toddler, preschool, and school-age years. Choose one of the four age groups (infant, toddler, preschool, or school age) and discuss the types of abuse that a..

User Account

All Pages