Wayne Owns a Small Apartment Building That Produces a $45,000

question 85

True/False

Wayne owns a small apartment building that produces a $45,000 loss during the year.His AGI before considering the rental loss is $85,000.Because Wayne is an active participant with respect to the rental activity, he may deduct the
$45,000 loss.

---

Definitions:

Pyroclastic Materials

Volcanic materials ejected during an eruption, including ash, pumice, lava bombs, and volcanic blocks.

Magma Chamber

A magma chamber is a large pool of liquid rock beneath the surface of the Earth, where magma accumulates before a volcanic eruption.

Pillow Basalt

A volcanic rock formation characterized by rounded, pillow-shaped masses, formed when lava extrudes underwater and cools rapidly.

Fissure Eruption

A volcanic eruption through a crack or fissure in the earth's surface, often producing long linear volcanoes.