Lindsey Owns and Actively Manages an Apartment Complex

question 27

Multiple Choice

Lindsey owns and actively manages an apartment complex.This year,the complex generated a $40,300 net loss.If Lindsey's AGI before considering this loss is $118,200 and she owns no other passive activities,how much of the loss is deductible this year?

• A)$0
• B)$9,100
• C)$25,000
• D)None of the above

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Definitions:

Dividends Declared

The announcement by a company’s board of directors of the payment of a specified amount per share to its shareholders, to be paid on a certain date.

Accounting Record

Documentation that contains the financial history and transactions of a company.

Shareholders' Equity

The amount of a company's total assets minus its total liabilities, representing the owners' share of the company.

Normal Balance

The side (debit or credit) on which increases to an account are recorded, based on the type of account.