When taxpayer has multiple passive activities

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Reference no: EM131933685

1. Which step must be completed first to determine allowable losses when a taxpayer has multiple passive activities?

a. Figure allowable loss from other passive activities

b. Figure allowable loss from rental real estate activities with active participation

c. Figure income or loss from each separate activity in the usual manner

d. Figure the allowable loss from rental real estate activities with significant participation

2. Which of the following would increase the net worht of S&Ls and banks (today)?

a. holding more Treasury bills

b. conversion from stock to mutual character

c. sale of stock

d. increased reserves for loan losses

Reference no: EM131933685

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