Indicate the Proper Treatment in the Current Year for the Underlined

question 81

Multiple Choice

Indicate the proper treatment in the current year for the underlined amounts. Treat each item as an independent event. Indicate whether the amount is deductible or not; if deductible whether it is deductible FOR or FROM AGI; and indicate the amount of the deduction for the current year considering any relevant limitations. Assume the taxpayer has deductions greater than the standard deduction, has AGI of $69,000 without regard to the following transactions and has no "total" income limitations related to itemized deductions.
-Taxpayer's only passive activity is a rental activity that results in a loss of $8,000. Amount: $8,000, since AGI is less than $100,000

• A)Not Deductible
• B)Deductible - For AGI
• C)Deductible - From AGI

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Definitions:

Eclecticism

The approach of making use of various theories, systems, or philosophies in an attempt to find the most effective approach for a client's needs.

Cognitive Therapy

A type of psychotherapy that helps patients challenge and change unhelpful cognitive distortions and behaviors to improve emotional regulation and develop personal coping strategies.

Psychoanalytic

Pertaining to a psychological theory and therapy method that focuses on unconscious processes as they are manifested in a person's behavior.

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An extinct species of large mammals closely related to modern elephants, known for their long, curved tusks and shaggy hair.