Simon Is a 30% Owner (Member)of Real Properties R Us,LLC

question 128

Multiple Choice

Simon is a 30% owner (member) of Real Properties R Us,LLC (RPRU) .During the current tax year,RPRU reported a loss from rental real estate activities of ($150,000) which is treated as a passive loss.Simon is a material participant in RPRU.His modified AGI is $122,000.In addition,Simon has passive income from other sources of $15,000.Assuming Simon meets the basis and at risk limitations,what amount of the RPRU loss may Simon deduct under the passive loss rules?

• A)$0.
• B)$15,000.
• C)$24,000.
• D)$29,000.
• E)$44,000.

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Definitions:

Goodness-of-fit Test

A goodness-of-fit test is a statistical test used to determine how well a set of observed values fits a specific distribution or model.

Normally Distributed

Characterized by its symmetry around the mean, this probability distribution highlights a more frequent occurrence of data near the mean compared to far from the mean.

Goodness-of-fit Test

A statistical method utilized to assess the adequacy of observed data conforming to a particular distribution.

Normally Distributed

Explains a probability distribution pattern that is uniform on both sides of the mean, highlighting that data points closer to the mean have a higher frequency of occurrence compared to those farther away.