Gertie Has a NSTCL of $9,000 and a NLTCG of $5,500

question 10

Multiple Choice

Gertie has a NSTCL of $9,000 and a NLTCG of $5,500 during the current taxable year. After gains and losses are offset, Gertie reports

• A) \(\begin{array}{|l|l|}
• \hline \text { An offset against } & \\
• \text { ordinary income } & \text { Loss carryforward } \\
• \hline \$ 3,000 & \$ 0\\\hline
• \end{array}\)
• B) \(\begin{array} { |l | l| }
• \hline\text { An offset against } & \\
• \text { ordinary income } & \text { Loss carryforward } \\
• \hline \$ 3,000 & \$ 500 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { |l | l| }
• \hline\text { An offset against } & \\
• \text { ordinary income } & \text { Loss carryforward } \\
• \hline \$ 3,500 & \$ 0 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { |l | l| }
• \hline\text { An offset against } & \\
• \text { ordinary income } & \text { Loss carryforward } \\
• \hline \$ 3,000 & \$ 6,000 \\
• \hline
• \end{array}\)

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Definitions:

Flow-Through Entities

Entities through which income flows to the owners or investors, avoiding corporate income tax.

Schedule E

A tax form used to report income and losses from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

Rental Days

The number of days a property is rented out or available for rent during a specific period.

Personal/Rental Property

Personal/rental property refers to property owned by an individual that can be used for personal use or rented out, affecting tax treatments and deductions.