Ivan and Olga own a duplex. They collect the rents and make repairs to the property when

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Ivan and Olga own a duplex. They collect the rents and make repairs to the property when necessary. That is, they are active participants in the rental property. During the current year, the duplex has gross rents of $16,000 and total allowable deductions of $31,000. What is the effect of the duplex rental on their taxable income if their adjusted gross income is
a. $87,000?
b. $122,000?
c. $155,000?
d. $139,000?

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Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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