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:

Massed Practice

A learning strategy that involves intense, concentrated periods of practice without breaks, often leading to quick acquisition but poor retention of information.

Distributed Practice

A learning strategy that involves spreading study sessions and practice over a period of time, rather than cramming all at once, to improve retention and skill development.

Long-Term Recall

The ability to retrieve and recognize information stored in memory for an extended period, often days, months, or years after initial learning.

Working Memory

A brain-function system with a constrained capacity dedicated to holding information short-term for processing needs.