Exercise 11 31 (Algorithmic) (LO 8) Noah Yobs, age 55, who has $81,400 of AGI (solely from wages) before considering rental activities, has $73,260 of losses from a real estate rental activity in which he actively participates He also actively participates in another real estate rental activity from which he has $40,700 of income He has other passive activity income of $26,048 a What amount of rental loss can Noah use to offset active or portfolio income in the current year $ b Compute Noah's AGI on Form 1040 page 1 also complete Schedule 1 (Form 1040) for the current year Use the minus sign to indicate a loss Form 1040 Department of the TreasuryInternal Revenue Service (99) U S Individual Income Tax Return 2021 OMB No 1545 0074 IRS Use Only Filing Status SingleMarried filing jointlyMarried filing separately (MFS)Head of household (with qualifying person) (HOH)Qualifying widow(er) (QW) Your first name and middle initial Noah Last name Yobs Your social security number 123 45 6789 If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street) If you have a P O box, see instructions Apt no Presidential Election Campaign Doyou, or your spouse if filing jointly, want $3 to go to this fund Selecting an option below will not change your tax or refund YesNo City, town, or post office If you have a foreign address, also complete spaces below State ZIP code Foreign country name Foreign province state county Foreign postal code At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency YesNo Standard Deduction Someone can claim You as a dependentYour spouse as a dependentSpouse itemizes on a separate return or you were a dual status alienNone Age Blindness You Were born before January 2, 1957Are blindWere born before January 2, 1957, Are blindNone Spouse Was born before January 2, 1957Is blindWas born before January 2, 1957, Is blindNone Dependents If more than four dependents, see instructions and check here (see instructions) (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions) (1) First name Last name Child tax credit Credit for other dependents Attach Sch B if required 1 Wages, salaries, tips, etc Attach Form(s) W 2 1 fill in the blank 02fc3bfdbfaa016 7 2a Tax exempt interest 2a b Taxable interest 2b 3a Qualified dividends 3a b Ordinary dividends 3b 4a IRA distributions 4a b Taxable amount 4b 5a Pensions and annuities 5a b Taxable amount 5b Standard Deduction for Single or Married filing separately, $12,550 Married filing jointly or Qualifying widow(er), $25,100 Head of household, $18,800 If you checked any box under Standard Deduction , see instructions 6a Social security benefits 6a b Taxable amount 6b 7 Capital gain or (loss) Attach Schedule D if required If not required, check here 7 8 Other income from Schedule 1, line 10 8 fill in the blank 02fc3bfdbfaa016 8 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8 This is your total income 9 fill in the blank 02fc3bfdbfaa016 9 10 Adjustments to income from Schedule 1, line 26 10 11 Subtract line 10 from line 9 This is your adjusted gross income 11 fill in the blank 02fc3bfdbfaa016 10 12a Standard deduction or itemized deductions (from Schedule A) 12a b Charitable contributions if you take the standard deduction (see instructions) 12b c Add lines 12a and 12b 12c 13 Qualified business income deduction from Form 8995 or Form 8995 A 13 14 Add lines 12c and 13 14 15 Taxable income Subtract line 14 from line 11 If zero or less, enter 0 15 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions Cat No 11320B Form 1040 (2021) SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Additional Income and Adjustments to Income Attach to Form 1040, 1040 SR, or 1040 NR Go to www irs gov Form1040 for instructions and the latest information OMB No 1545 0074 2021 Attachment Sequence No 01 Name(s) shown on Form 1040, 1040 SR, or 1040 NR Noah Yobs Your social security number 123 45 6789 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received 2a b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss) Attach Schedule C 3 4 Other gains or (losses) Attach Form 4797 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc Attach Schedule E 5 fill in the blank 02fc3bfdbfaa016 11 6 Farm income or (loss) Attach Schedule F 6 7 Unemployment compensation 7 8 Other income a Net operating loss 8a () b Gambling income 8b c Cancellation of debt 8c d Foreign earned income exclusion from Form 2555 8d () e Taxable Health Savings Account distribution 8e f Alaska Permanent Fund dividends 8f g Jury duty pay 8g h Prizes and awards 8h i Activity not engaged in for profit income 8i j Stock options 8j k Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property 8k l Olympic and Paralympic medals and USOC prize money (see instructions) 8l m Section 951(a) inclusion (see instructions) 8m n Section 951A(a) inclusion (see instructions) 8n o Section 461(l) excess business loss adjustment 8o p Taxable distributions from an ABLE account (see instructions) 8p z Other income List type and amount 8z 9 Total other income Add lines 8a through 8z 9 10 Combine lines 1 through 7 and 9 Enter here and on Form 1040, 1040 SR, or 1040 NR, line 8 10 fill in the blank 02fc3bfdbfaa016 12 For Paperwork Reduction Act Notice, see your tax return instructions Cat No 71479F Schedule 1 (Form 1040) 2021 Schedule 1 (Form 1040) 2021 Page 2 Part II Adjustments to Income 11 Educator expenses 11 12 Certain business expenses of reservists, performing artists, and fee basis government officials Attach Form 2106 12 13 Health savings account deduction Attach Form 8889 13 14 Moving expenses for members of the Armed Forces Attach Form 3903 14 15 Deductible part of self employment tax Attach Schedule SE 15 16 Self employed SEP, SIMPLE, and qualified plans 16 17 Self employed health insurance deduction 17 18 Penalty on early withdrawal of savings 18 19a Alimony paid 19a b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 20 IRA deduction 20 21 Student loan interest deduction 21 22 Reserved for future use 22 23 Archer MSA deduction 23 24 Other adjustments a Jury duty pay (see instructions) 24a b Deductible expenses related to income reported on line 8k from the rental of personal property engaged in for profit 24b c Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8l 24c d Reforestation amortization and expenses 24d e Repayment of supplemental unemployment benefits under the Trade Act of 1974 24e f Contributions to section 501(c)(18)(D) pension plans 24f g Contributions by certain chaplains to section 403(b) plans 24g h Attorney fees and court costs for actions involving certain unlawful discrimination claims (see instructions) 24h i Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations 24i j Housing deduction from Form 2555 24j k Excess deductions of section 67(e) expenses from Schedule K 1 (Form 1041) 24k z Other adjustments List type and amount 24z 25 Total other adjustments Add lines 24a through 24z 25 26 Add lines 11 through 23 and 25 These are your adjustments to income Enter here and on Form 1040 or 1040 SR, line 10, or Form 1040 NR, line 10a 26 Schedule 1 (Form 1040) 2021 Exercise 11 31 (Algorithmic) (LO 8) Noah Yobs, age 55, who has $81,400 of AGI (solely from wages) before considering rental activities, has $73,260 of losses from a real estate rental activity in which he actively participates He also actively participates in another real estate rental activity from which he has $40,700 of income He has other passive activity income of $26,048 a What amount of rental loss can Noah use to offset active or portfolio income in the current year $ b Compute Noah's AGI on Form 1040 page 1 also complete Schedule 1 (Form 1040) for the current year Use the minus sign to indicate a loss Form 1040 Department of the TreasuryInternal Revenue Service (99) U S Individual Income Tax Return 2021 OMB No 1545 0074 IRS Use Only Filing Status SingleMarried filing jointlyMarried filing separately (MFS)Head of household (with qualifying person) (HOH)Qualifying widow(er) (QW) Your first name and middle initial Noah Last name Yobs Your social security number 123 45 6789 If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street) If you have a P O box, see instructions Apt no Presidential Election Campaign Doyou, or your spouse if filing jointly, want $3 to go to this fund Selecting an option below will not change your tax or refund YesNo City, town, or post office If you have a foreign address, also complete spaces below State ZIP code Foreign country name Foreign province state county Foreign postal code At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency YesNo Standard Deduction Someone can claim You as a dependentYour spouse as a dependentSpouse itemizes on a separate return or you were a dual status alienNone Age Blindness You Were born before January 2, 1957Are blindWere born before January 2, 1957, Are blindNone Spouse Was born before January 2, 1957Is blindWas born before January 2, 1957, Is blindNone Dependents If more than four dependents, see instructions and check here (see instructions) (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions) (1) First name Last name Child tax credit Credit for other dependents Attach Sch B if required 1 Wages, salaries, tips, etc Attach Form(s) W 2 1 fill in the blank 02fc3bfdbfaa016 7 2a Tax exempt interest 2a b Taxable interest 2b 3a Qualified dividends 3a b Ordinary dividends 3b 4a IRA distributions 4a b Taxable amount 4b 5a Pensions and annuities 5a b Taxable amount 5b Standard Deduction for Single or Married filing separately, $12,550 Married filing jointly or Qualifying widow(er), $25,100 Head of household, $18,800 If you checked any box under Standard Deduction , see instructions 6a Social security benefits 6a b Taxable amount 6b 7 Capital gain or (loss) Attach Schedule D if required If not required, check here 7 8 Other income from Schedule 1, line 10 8 fill in the blank 02fc3bfdbfaa016 8 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8 This is your total income 9 fill in the blank 02fc3bfdbfaa016 9 10 Adjustments to income from Schedule 1, line 26 10 11 Subtract line 10 from line 9 This is your adjusted gross income 11 fill in the blank 02fc3bfdbfaa016 10 12a Standard deduction or itemized deductions (from Schedule A) 12a b Charitable contributions if you take the standard deduction (see instructions) 12b c Add lines 12a and 12b 12c 13 Qualified business income deduction from Form 8995 or Form 8995 A 13 14 Add lines 12c and 13 14 15 Taxable income Subtract line 14 from line 11 If zero or less, enter 0 15 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions Cat No 11320B Form 1040 (2021) SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Additional Income and Adjustments to Income Attach to Form 1040, 1040 SR, or 1040 NR Go to www irs gov Form1040 for instructions and the latest information OMB No 1545 0074 2021 Attachment Sequence No 01 Name(s) shown on Form 1040, 1040 SR, or 1040 NR Noah Yobs Your social security number 123 45 6789 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received 2a b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss) Attach Schedule C 3 4 Other gains or (losses) Attach Form 4797 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc Attach Schedule E 5 fill in the blank 02fc3bfdbfaa016 11 6 Farm income or (loss) Attach Schedule F 6 7 Unemployment compensation 7 8 Other income a Net operating loss 8a () b Gambling income 8b c Cancellation of debt 8c d Foreign earned income exclusion from Form 2555 8d () e Taxable Health Savings Account distribution 8e f Alaska Permanent Fund dividends 8f g Jury duty pay 8g h Prizes and awards 8h i Activity not engaged in for profit income 8i j Stock options 8j k Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property 8k l Olympic and Paralympic medals and USOC prize money (see instructions) 8l m Section 951(a) inclusion (see instructions) 8m n Section 951A(a) inclusion (see instructions) 8n o Section 461(l) excess business loss adjustment 8o p Taxable distributions from an ABLE account (see instructions) 8p z Other income List type and amount 8z 9 Total other income Add lines 8a through 8z 9 10 Combine lines 1 through 7 and 9 Enter here and on Form 1040, 1040 SR, or 1040 NR, line 8 10 fill in the blank 02fc3bfdbfaa016 12 For Paperwork Reduction Act Notice, see your tax return instructions Cat No 71479F Schedule 1 (Form 1040) 2021 Schedule 1 (Form 1040) 2021 Page 2 Part II Adjustments to Income 11 Educator expenses 11 12 Certain business expenses of reservists, performing artists, and fee basis government officials Attach Form 2106 12 13 Health savings account deduction Attach Form 8889 13 14 Moving expenses for members of the Armed Forces Attach Form 3903 14 15 Deductible part of self employment tax Attach Schedule SE 15 16 Self employed SEP, SIMPLE, and qualified plans 16 17 Self employed health insurance deduction 17 18 Penalty on early withdrawal of savings 18 19a Alimony paid 19a b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 20 IRA deduction 20 21 Student loan interest deduction 21 22 Reserved for future use 22 23 Archer MSA deduction 23 24 Other adjustments a Jury duty pay (see instructions) 24a b Deductible expenses related to income reported on line 8k from the rental of personal property engaged in for profit 24b c Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8l 24c d Reforestation amortization and expenses 24d e Repayment of supplemental unemployment benefits under the Trade Act of 1974 24e f Contributions to section 501(c)(18)(D) pension plans 24f g Contributions by certain chaplains to section 403(b) plans 24g h Attorney fees and court costs for actions involving certain unlawful discrimination claims (see instructions) 24h i Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations 24i j Housing deduction from Form 2555 24j k Excess deductions of section 67(e) expenses from Schedule K 1 (Form 1041) 24k z Other adjustments List type and amount 24z 25 Total other adjustments Add lines 24a through 24z 25 26 Add lines 11 through 23 and 25 These are your adjustments to income Enter here and on Form 1040 or 1040 SR, line 10, or Form 1040 NR, line 10a 26 Schedule 1 (Form 1040) 2021

The Answer is in the image, click to view ...

Question: Exercise 11-31 (Algorithmic) (LO. 8) Noah Yobs, age 55, who has $81,400 of AGI (solely from wages) before considering rental activities, has $73,260 of losses

Exercise 11-31 (Algorithmic) (LO. 8)

Noah Yobs, age 55, who has $81,400 of AGI (solely from wages) before considering rental activities, has $73,260 of losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity from which he has $40,700 of income. He has other passive activity income of $26,048.

a. What amount of rental loss can Noah use to offset active or portfolio income in the current year? $_______

b. Compute Noah's AGI on Form 1040 [page 1; also complete Schedule 1 (Form 1040)] for the current year. Use the minus sign to indicate a loss.

_Form

1040

_{Department of the TreasuryInternal Revenue Service (99)} U.S. Individual Income Tax Return

2021

OMB No. 1545-0074

IRS Use Only

Filing Status SingleMarried filing jointlyMarried filing separately (MFS)Head of household (with qualifying person) (HOH)Qualifying widow(er) (QW)
Your first name and middle initial Noah	Last name Yobs	Your social security number 123-45-6789
If joint return, spouse's first name and middle initial	Last name	Spouse's social security number
Home address (number and street). If you have a P.O. box, see instructions.	Apt. no.	Presidential Election Campaign Doyou, or your spouse if filing jointly, want $3 to go to this fund. Selecting an option below will not change your tax or refund. YesNo
City, town, or post office. If you have a foreign address, also complete spaces below.	State	ZIP code
Foreign country name	Foreign province/state/county	Foreign postal code

At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?

YesNo

Standard Deduction

Someone can claim:

You as a dependentYour spouse as a dependentSpouse itemizes on a separate return or you were a dual-status alienNone

Age/Blindness

You:

Were born before January 2, 1957Are blindWere born before January 2, 1957, Are blindNone

Spouse:

Was born before January 2, 1957Is blindWas born before January 2, 1957, Is blindNone

Dependents If more than four dependents, see instructions and check here	(see instructions):	(2) Social security number	(3) Relationship to you	(4) if qualifies for (see instructions):
(1) First name	Last name	Child tax credit	Credit for other dependents

Attach Sch. B if required.	1	Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1	fill in the blank 02fc3bfdbfaa016_7
2a	Tax-exempt interest . .	2a		b	Taxable interest . . . . . . . . . .	2b
3a	Qualified dividends . . .	3a		b	Ordinary dividends . . . . . . . .	3b
4a	IRA distributions . . . . .	4a		b	Taxable amount . . . . . . . . . .	4b
	5a	Pensions and annuities	5a		b	Taxable amount . . . . . . . . . .	5b
Standard Deduction for- Single or Married filing separately, $12,550 Married filing jointly or Qualifying widow(er), $25,100 Head of household, $18,800 If you checked any box under Standard Deduction, see instructions.	6a	Social security benefits	6a		b	Taxable amount . . . . . . . . . .	6b
7	Capital gain or (loss). Attach Schedule D if required. If not required, check here . . .	7
8	Other income from Schedule 1, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8	fill in the blank 02fc3bfdbfaa016_8
9	Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . . . . . . . . . . . . .	9	fill in the blank 02fc3bfdbfaa016_9
10	Adjustments to income from Schedule 1, line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10
11	Subtract line 10 from line 9. This is your adjusted gross income . . . . . . . . . . . . . .	11	fill in the blank 02fc3bfdbfaa016_10
12a	Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12a
b	Charitable contributions if you take the standard deduction (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12b
c	Add lines 12a and 12b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12c
13	Qualified business income deduction from Form 8995 or Form 8995-A . . . . . . . . . . . . .	13
14	Add lines 12c and 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
15	Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- . . . . . . . . . . . .	15

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11320B

Form 1040 (2021)

SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service

Additional Income and Adjustments to Income

Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form1040 for instructions and the latest information.

OMB No. 1545-0074

2021

Attachment Sequence No. 01

Name(s) shown on Form 1040, 1040-SR, or 1040-NR Noah Yobs

Your social security number

123-45-6789

Part I

Additional Income

1	Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
2a	Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2a
b	Date of original divorce or separation agreement (see instructions)
3	Business income or (loss). Attach Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
4	Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
5	Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E . . . . . . . . . . . . . . .	5	fill in the blank 02fc3bfdbfaa016_11
6	Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6
7	Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7
8	Other income:
a	Net operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8a	()
b	Gambling income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8b
c	Cancellation of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8c
d	Foreign earned income exclusion from Form 2555 . . . . . . . . . . . . . . . . . . . . . . .	8d	()
e	Taxable Health Savings Account distribution . . . . . . . . . . . . . . . . . . . . . . . . . . .	8e
f	Alaska Permanent Fund dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8f
g	Jury duty pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8g
h	Prizes and awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8h
i	Activity not engaged in for profit income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8i
j	Stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8j
k	Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property . . . . . . . . . . . . . . . . . . . . .	8k
l	Olympic and Paralympic medals and USOC prize money (see instructions) . . . . . .	8l
m	Section 951(a) inclusion (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8m
n	Section 951A(a) inclusion (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . .	8n
o	Section 461(l) excess business loss adjustment . . . . . . . . . . . . . . . . . . . . . . . . .	8o
p	Taxable distributions from an ABLE account (see instructions) . . . . . . . . . . . . . . .	8p
z	Other income. List type and amount
		8z
9	Total other income. Add lines 8a through 8z . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9
10	Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 . . . . . . . . . . .	10	fill in the blank 02fc3bfdbfaa016_12

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 71479F

Schedule 1 (Form 1040) 2021

Schedule 1 (Form 1040) 2021

Page 2

Part II

Adjustments to Income

11	Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	11
12	Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12
13	Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	13
14	Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
15	Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	15
16	Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16
17	Self-employed health insurance deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	17
18	Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	18
19a	Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	19a
b	Recipient's SSN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c	Date of original divorce or separation agreement (see instructions) . . . . . . . .
20	IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	20
21	Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	21
22	Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	22
23	Archer MSA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	23
24	Other adjustments:
a	Jury duty pay (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24a
b	Deductible expenses related to income reported on line 8k from the rental of personal property engaged in for profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24b
c	Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24c
d	Reforestation amortization and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24d
e	Repayment of supplemental unemployment benefits under the Trade Act of 1974 . .	24e
f	Contributions to section 501(c)(18)(D) pension plans . . . . . . . . . . . . . . . . . . . . . .	24f
g	Contributions by certain chaplains to section 403(b) plans . . . . . . . . . . . . . . . . . .	24g
h	Attorney fees and court costs for actions involving certain unlawful discrimination claims (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24h
i	Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations . . . . . . . . .	24i
j	Housing deduction from Form 2555 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24j
k	Excess deductions of section 67(e) expenses from Schedule K-1 (Form 1041) . . . . .	24k
z	Other adjustments. List type and amount
		24z
25	Total other adjustments. Add lines 24a through 24z . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	25
26	Add lines 11 through 23 and 25. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 10, or Form 1040-NR, line 10a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	26
Schedule 1 (Form 1040) 2021

Exercise 11-31 (Algorithmic) (LO. 8)

a. What amount of rental loss can Noah use to offset active or portfolio income in the current year? $________

b. Compute Noah's AGI on Form 1040 [page 1; also complete Schedule 1 (Form 1040)] for the current year. Use the minus sign to indicate a loss.

_Form

1040

_{Department of the TreasuryInternal Revenue Service (99)} U.S. Individual Income Tax Return

2021

OMB No. 1545-0074

IRS Use Only

Filing Status SingleMarried filing jointlyMarried filing separately (MFS)Head of household (with qualifying person) (HOH)Qualifying widow(er) (QW)
Your first name and middle initial Noah	Last name Yobs	Your social security number 123-45-6789
If joint return, spouse's first name and middle initial	Last name	Spouse's social security number
Home address (number and street). If you have a P.O. box, see instructions.	Apt. no.	Presidential Election Campaign Doyou, or your spouse if filing jointly, want $3 to go to this fund. Selecting an option below will not change your tax or refund. YesNo
City, town, or post office. If you have a foreign address, also complete spaces below.	State	ZIP code
Foreign country name	Foreign province/state/county	Foreign postal code

At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?

YesNo

Standard Deduction

Someone can claim:

You as a dependentYour spouse as a dependentSpouse itemizes on a separate return or you were a dual-status alienNone

Age/Blindness

You:

Were born before January 2, 1957Are blindWere born before January 2, 1957, Are blindNone

Spouse:

Was born before January 2, 1957Is blindWas born before January 2, 1957, Is blindNone

Dependents If more than four dependents, see instructions and check here	(see instructions):	(2) Social security number	(3) Relationship to you	(4) if qualifies for (see instructions):
(1) First name	Last name	Child tax credit	Credit for other dependents

Attach Sch. B if required.	1	Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1	fill in the blank 02fc3bfdbfaa016_7
2a	Tax-exempt interest . .	2a		b	Taxable interest . . . . . . . . . .	2b
3a	Qualified dividends . . .	3a		b	Ordinary dividends . . . . . . . .	3b
4a	IRA distributions . . . . .	4a		b	Taxable amount . . . . . . . . . .	4b
	5a	Pensions and annuities	5a		b	Taxable amount . . . . . . . . . .	5b
Standard Deduction for- Single or Married filing separately, $12,550 Married filing jointly or Qualifying widow(er), $25,100 Head of household, $18,800 If you checked any box under Standard Deduction, see instructions.	6a	Social security benefits	6a		b	Taxable amount . . . . . . . . . .	6b
7	Capital gain or (loss). Attach Schedule D if required. If not required, check here . . .	7
8	Other income from Schedule 1, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8	fill in the blank 02fc3bfdbfaa016_8
9	Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . . . . . . . . . . . . .	9	fill in the blank 02fc3bfdbfaa016_9
10	Adjustments to income from Schedule 1, line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10
11	Subtract line 10 from line 9. This is your adjusted gross income . . . . . . . . . . . . . .	11	fill in the blank 02fc3bfdbfaa016_10
12a	Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12a
b	Charitable contributions if you take the standard deduction (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12b
c	Add lines 12a and 12b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12c
13	Qualified business income deduction from Form 8995 or Form 8995-A . . . . . . . . . . . . .	13
14	Add lines 12c and 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
15	Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- . . . . . . . . . . . .	15

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11320B

Form 1040 (2021)

SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service

Additional Income and Adjustments to Income

Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form1040 for instructions and the latest information.

OMB No. 1545-0074

2021

Attachment Sequence No. 01

Name(s) shown on Form 1040, 1040-SR, or 1040-NR Noah Yobs

Your social security number

123-45-6789

Part I

Additional Income

1	Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
2a	Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2a
b	Date of original divorce or separation agreement (see instructions)
3	Business income or (loss). Attach Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
4	Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
5	Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E . . . . . . . . . . . . . . .	5	fill in the blank 02fc3bfdbfaa016_11
6	Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6
7	Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7
8	Other income:
a	Net operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8a	()
b	Gambling income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8b
c	Cancellation of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8c
d	Foreign earned income exclusion from Form 2555 . . . . . . . . . . . . . . . . . . . . . . .	8d	()
e	Taxable Health Savings Account distribution . . . . . . . . . . . . . . . . . . . . . . . . . . .	8e
f	Alaska Permanent Fund dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8f
g	Jury duty pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8g
h	Prizes and awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8h
i	Activity not engaged in for profit income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8i
j	Stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8j
k	Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property . . . . . . . . . . . . . . . . . . . . .	8k
l	Olympic and Paralympic medals and USOC prize money (see instructions) . . . . . .	8l
m	Section 951(a) inclusion (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8m
n	Section 951A(a) inclusion (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . .	8n
o	Section 461(l) excess business loss adjustment . . . . . . . . . . . . . . . . . . . . . . . . .	8o
p	Taxable distributions from an ABLE account (see instructions) . . . . . . . . . . . . . . .	8p
z	Other income. List type and amount
		8z
9	Total other income. Add lines 8a through 8z . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9
10	Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 . . . . . . . . . . .	10	fill in the blank 02fc3bfdbfaa016_12

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 71479F

Schedule 1 (Form 1040) 2021

Schedule 1 (Form 1040) 2021

Page 2

Part II

Adjustments to Income

11	Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	11
12	Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12
13	Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	13
14	Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
15	Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	15
16	Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16
17	Self-employed health insurance deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	17
18	Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	18
19a	Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	19a
b	Recipient's SSN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c	Date of original divorce or separation agreement (see instructions) . . . . . . . .
20	IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	20
21	Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	21
22	Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	22
23	Archer MSA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	23
24	Other adjustments:
a	Jury duty pay (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24a
b	Deductible expenses related to income reported on line 8k from the rental of personal property engaged in for profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24b
c	Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24c
d	Reforestation amortization and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24d
e	Repayment of supplemental unemployment benefits under the Trade Act of 1974 . .	24e
f	Contributions to section 501(c)(18)(D) pension plans . . . . . . . . . . . . . . . . . . . . . .	24f
g	Contributions by certain chaplains to section 403(b) plans . . . . . . . . . . . . . . . . . .	24g
h	Attorney fees and court costs for actions involving certain unlawful discrimination claims (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24h
i	Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations . . . . . . . . .	24i
j	Housing deduction from Form 2555 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24j
k	Excess deductions of section 67(e) expenses from Schedule K-1 (Form 1041) . . . . .	24k
z	Other adjustments. List type and amount
		24z
25	Total other adjustments. Add lines 24a through 24z . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	25
26	Add lines 11 through 23 and 25. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 10, or Form 1040-NR, line 10a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	26
Schedule 1 (Form 1040) 2021

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