Match Each Statement with the Correct Term Below

question 35

Multiple Choice

Match each statement with the correct term below.
-Passive activity

• A)Limited to $3,000 annually for individuals.
• B)When an asset is disposed of for less than its basis.
• C)An excess of business deductions over business income.
• D)A trade or business in which the taxpayer is not a material participant.
• E)A loss that results from some sudden, unexpected, or unusual event.
• F)Any asset that is not a receivable, inventory, or depreciable or real property used in a trade or business.

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Definitions:

Consideration

The value, often monetary, promised in a contract to be exchanged between the parties involved, a fundamental requirement for a contract to be legally binding.

Nonconforming Use

A land-use situation where a property is utilized in a manner that does not comply with the current zoning laws, but has been allowed because it predated zoning regulations.

Zoning Ordinances

Laws regulating the use of land and buildings within specific areas to control and direct property development.

Assumes the Mortgage

The process by which a buyer takes over the seller's mortgage as part of the terms of purchasing a home.