Brandon,a Single Taxpayer,had a Loss of $48,000 from a Rental

question 57

Multiple Choice

Brandon,a single taxpayer,had a loss of $48,000 from a rental real estate activity in which he actively participated.He also had $27,000 of income from another rental real estate activity in which he actively participated.He acquired both investments in the current year.If Brandon has no other passive income or losses and has adjusted gross income of $84,000 before considering passive activities,how much loss from rental activities can he use to offset his nonpassive income?

• A)$21,000
• B)$24,000
• C)$25,000
• D)$45,000

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Definitions:

Process of Adjustment

The psychological and behavioral process by which individuals adapt to new conditions, circumstances, or environments.

Coping

The strategies or mechanisms individuals use to manage stress, adversity, or emotional distress.

Experimental Group

The subjects in an experiment who receive some special treatment in regard to the independent variable.

Dependent Variable

The variable in an experiment that is observed and expected to change as a result of manipulations in the independent variable.