Bruce Owns a Small Apartment Building That Produces a $25,000

question 32

True/False

Bruce owns a small apartment building that produces a $25,000 loss during the year.His AGI before considering the rental loss is $85,000.Bruce must be a material participant with respect to the rental activity in order to deduct the
$25,000 loss under the real estate rental exception.

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Definitions:

Void Title

Not true title; for example, the title held by someone who knowingly or unknowingly purchased stolen goods.

French-Based Code Law

A legal system based on comprehensive written statutes and codes as a primary source of law, in contrast to common law systems; it is derived from the Napoleonic Code.

Merchant

An individual or company engaged in the buying and selling of goods for profit.

Buyer

An individual or entity that purchases goods or services from another party.