Victor Is a 40% Owner (Member) of Real Properties R

question 28

Multiple Choice

Victor is a 40% owner (member) of Real Properties R Us, LLC (RPRU) . During the current tax year, RPRU reported a loss from rental real estate activities of ($200,000) which is treated as a passive loss. Victor is a material participant in RPRU and meets the active participation requirements for rental real estate activities. His modified AGI is $120,000. In addition, Victor has passive income from other sources of $60,000. Assuming Victor meets the basis and at risk limitations, what amount of the RPRU loss may Victor deduct under the passive loss rules?

• A) $80,000.
• B) $75,000.
• C) $70,000.
• D) $60,000.
• E) $0.

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Definitions:

Situational Aspects

Factors or conditions, present in a situation, that can influence outcomes or the behavior of individuals.

Empowering Leadership

A leadership approach focused on delegating power to employees, enabling them to take initiative, make decisions, and solve problems autonomously.

Labor Costs

The total sum of all wages, benefits, and taxes that an employer incurs in compensation for the work performed by employees.

Strategic Decision Making

The process of making choices by identifying priorities, alternatives, and potential impacts, often under conditions of uncertainty, to achieve strategic goals.