A taxpayer had the following for the current year: Active Portfolio Passive Income Income Income Income $75,000
Fantastic news! We've Found the answer you've been seeking!
Question:
A taxpayer had the following for the current year:
Active | Portfolio | Passive | |
Income | Income | Income | |
Income | $75,000 | $22,000 | $55,000 |
Deductions | (45,000) | (16,000) | (110,000) |
Income(Loss) | $30,000 | $6,000 | $(55,000) |
I. | If the taxpayer is a closely held corporation, taxable income from the three activities is income of $6,000. |
II. | If the taxpayer is an individual and the passive income is not related to a rental real estate activity, taxable income is $36,000. |
a. | Only statement I is correct. | |
b. | Only statement II is correct. | |
c. | Both statements are correct. | |
d. | Neither statement is correct. |
Related Book For
Posted Date: