Question 44 of 75 When a taxpayer owns a part rental/part personal-use property,

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Question 44 of 75 When a taxpayer owns a part rental/part personal-use property, how are real estate taxes on that property treated on return? O Prorated deduction on Schedule E and Schedule C. Prorated deduction on Schedule E and Schedule A. O Chosen deduction of full amount on either Schedule E or Schedule A. O Fully deducted on Schedule E. i 0 , al Mark for follow up Question 45 of 75. David has income from several sources. Which one is considered passive income? O Dividends paid on shares of a mutual fund in his 401(k) account. O Dividends pa id on shares of a mutual fund in his Roth IRA nemployment benefits received during a one-month layoff. ful ar rental of his house in the country.

Explanation / Answer

44 Ans. is B Prorated deduction on schedule E and schedule A

Explanation: When a taxpayer uses his real estate (i)more than 14 days or (ii) 10% of rental days, its classified as personal property at the same time uses it forrental , then its called a mixed use property and deduction for property taxes is allowed prorated on schedule E (rental) and schedule A(personal)

45 Ans. D Full year rental of his house in the country.

Explanation: Passive income is generally consists of rental income or income form business on which no active participation is done by taxpayer.

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