Question: Using the following information given and your knowledge please answer the questions below: Question 4 Alice has the following items in 2020. Her AGI before

Using the following information given and your knowledge please answer the questions below:

Using the following information given and your knowledge please answer the questions

Question 4 Alice has the following items in 2020. Her AGI before any items below is 0. . Alice has the tax-basis in her Alice in the Wonderland LLC of $60k. Alice in the Wonderland LLC has a loss and Alice's share of the loss is $80k. Alice does not actively work for the LLC. . Alice invest in stock and has a $2k long-term capital gain and $3k of short-term capital gain. Alice has a small online shop which she very rarely managed. Most work is done by a manager and Alice only job is to collect money from the store. The business generates $10k income . Alice has a spare home in Honolulu which she rent out on Airbnb. Due to COVID-19, the Airbnb rental business has a bad year with a $12k loss. Alice main job is being the managing director at Alice-a Keys LLC, a company specializing in producing R&B music tracks. Alice is also the sole owner of the LLC. In 2020, the company generates $25k How much loss from the business activities can Alice deduct in 2020? How much of the loss is carried forward (report loss carried forward separately)? Show step-by-step calculation and explanation

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!