During the Current Year, Ethan Performs Personal Services as Follows

question 43

Multiple Choice

During the current year, Ethan performs personal services as follows: 800 hours in his information technology consulting practice, 625 hours in a real estate development business, and 510 hours in a condominium leasing operation. He expects that losses will be realized from the two real estate ventures while his consulting practice will show a profit. Ethan files a joint return with his wife whose salary is $125,000. The income and losses from the following ventures is considered active and not subject to the passive activity loss limitations:

• A)Only the information technology consulting practice.
• B)Only the information technology consulting practice and the real estate development business.
• C)Only the information technology consulting practice and the condominium leasing operation.
• D)All three of the ventures are considered active and not subject to the passive activity loss limitations.
• E)None of the above.

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Definitions:

Erikson

A psychoanalyst known for his theory on the psychosocial development of human beings, highlighting eight stages that span from infancy to late adulthood.

Identity Cohesion

The sense of unity, consistency, and clarity about one's own identity over time and across situations.

Fanatical Groups

Organizations or collectives characterized by extreme, uncritical enthusiasm or zeal, often for a specific cause or belief.

Developing Ego

The process of the ego's growth and maturation in psychoanalytic theory, which governs reality testing and helps manage individual desires and social norms.