Shaunda Has AGI of $90,000 and Owns Rental Property Generating

question 21

Multiple Choice

Shaunda has AGI of $90,000 and owns rental property generating a $27,000 loss.She actively manages the property.Her deductible loss is

• A)$0.
• B)$13,500.
• C)$25,000.
• D)$27,000.

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Definitions:

Sole Proprietorship

A business structure owned by a single individual, where the owner and the business are legally considered the same.

LLC Statute

Rules and regulations governing Limited Liability Companies, outlining the formation, operation, and taxation specifics.

Wyoming

A state in the western United States known for its wide-open spaces, mountains, and national parks.

Certificate of Organization

A legal document filed with a government body to officially document the formation of a new corporation, limited liability company, or other legal entity.