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

question 1947

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

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Definitions:

Single-case Design

A research design that focuses on the response of a single subject to document the effects of a specific condition or intervention.

Reversal Designs

Experimental designs in which an intervention is introduced, removed, and then reintroduced to gauge its effects.

ABAB Design

A type of experimental design in behavioral science that involves alternating between a baseline period (A) and an intervention period (B).

Withdrawal Period

The time span during which a participant stops taking a medication or substance as part of a study or clinical trial, or to cleanse the body before a procedure.