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:

Monthly Sales

The total revenue generated from sales activities during a calendar month.

Net Operating Income

A metric assessing a corporation's earnings from its primary operations, before considering reductions for interest and taxes.

Contribution Margin Ratio

The percentage of each sales dollar that remains after variable costs are subtracted, indicating how much contributes towards fixed costs and profit.

Target Profit

The desired amount of net income a company aims to achieve for a certain period as part of its financial and strategic planning.