Sandra, a CPA, earns $250,000 from her accounting practice in the current year. Her interest income for
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Question:
Sandra, a CPA, earns $250,000 from her accounting practice in the current year. Her interest income for the year is $15,000.
She also has the following income and loss from her other investments:
- Activity A incurred a loss of $50,000. Sandra is not a material participant in Activity A. Her at-risk investment in Activity A is $65,000 at the beginning of the year.
- Activity B incurred a loss of $18,000. Sandra is a material participant in Activity B. Her at-risk investment in Activity B is $12,000 at the beginning of the year.
- Activity C had income of $10,000. Sandra is not material participant in Activity C. Her at-risk investment in Activity C is $8,000 at the beginning of the year.
1. What is Sandra's gross income for the year? Show computations.
2. What is Sandra's suspended at-risk loss carryover and passive activity loss carryover at the end of the year, if any? Show computations.
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date: