Aretha Has AGI of Less Than $100,000 and a 25

question 81

Essay

Aretha has AGI of less than $100,000 and a 25% marginal tax rate.During the year,she reports a $36,000 loss from Activity A and a $24,000 loss from Activity B.Additionally,Activity A generates $8,000 of tax credits.Both activities A and B are passive real estate rental activities in which Anita actively participates and owns over 10% of each activity.
a.How much loss can be recognized from each activity?
b.What is the amount of Aretha's suspended loss from each activity?
c.How much of the tax credits can be applied this year?

---

Definitions:

Modern-Day

Pertaining to the present time or the recent past, reflecting the characteristics and conditions of the current era.

Auteur

A director (or, less commonly, a producer or screenwriter) with a recognizable and distinctive style who can be considered the sole “author” of a film.

Thematic Concerns

The underlying topics or issues that a film, novel, or other artistic work seeks to explore or address.

Way Down East

A silent film directed by D.W. Griffith, notable for its pioneering cinematography and storytelling techniques.