1. Phuong has the following sources of investment income: Money market account interest $2,000 Interest on State...
Question:
1. Phuong has the following sources of investment income:
Money market account interest | $2,000 |
Interest on State of New York bond | 1,000 |
Dividends from domestic stocks | 3,000 |
Long-term capital gain | 4,000 |
Short-term capital gain | 5,000 |
Barring any special elections, how much of the investment income will be included in calculating net investment income for purposes of the investment interest expense limitation
2. Nancy reports the following income and loss in the current year.
Salary | $ 60,000 |
Income from activity A | 18,000 |
Loss from activity B | ( 9,000) |
Loss from activity C | ( 13,000) |
All three activities are passive activities with respect to Nancy. Nancy also has $21,000 of suspended losses attributable to activity C carried over from prior years. During the year, Nancy sells activity C and realizes a $15,000 taxable gain. What is Nancy's AGI as a result of these transactions?
Business Statistics A First Course
ISBN: 978-0321979018
7th edition
Authors: David M. Levine, Kathryn A. Szabat, David F. Stephan