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

question 80

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 2014.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:

Budget Committee

A group of key managers who are responsible for overall budgeting policy and for coordinating the preparation of the budget.

Detailed Budgets

Comprehensive financial plans that itemize future projected income and expenses.

Beginning Cash Balance

The amount of cash available at the start of a financial period.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period to manage liquidity and ensure cash availability.