Question 45 ot 75.EW Which of the following does NOT describe a day of personal
ID: 2597204 • Letter: Q
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Question 45 ot 75.EW Which of the following does NOT describe a day of personal use? O The property owner rented his house to his employer for $50 a day. The fair market rental value is $75 a dawy, The owner's brother stayed on the property for a week paying $500. The fair market rental value is $600 a week The owner's mother stays on the property all year paying s600 a month rent.The property is the mother's principardence and O the fair market rental value is $600 a month. The owner rents his mountain property to an outside party for $500 $750 a week. The fair market rental value of the mountain house is $500 a week. a week in exchange for staying at their lakefront property for Mark for follow up Question 46 of 75 Billy is a single taxpayer with modified AGI of $140,000 and an active participation rental real Assuming he has no other source of passive income, what is his adjusted special loss allowance? estate loss of $30,000. 0 $5,000 $10,000 $15,000 Mark for follow upExplanation / Answer
Question 45). Answer :- Option D). The owner rents his mountain property to an outside party for $ 500 a week in exchange for staying at their lakefront property for $ 750 a week. The fair market rental value of the mountain house is $ 500 a week.
Question 46). Answer :- Option B). $ 5,000.
Explanation :- Ajusted special loss allowance = 25000 - (140000 - 100000) * 50 %
= 25000 - 40000 * 50 %
= 25000 - 20000
= $ 5,000. (Option B).
Note :- Maximum allowable adjusted special loss allowance is $ 25,000, however, the same will be reduced by 50 % of the adjusted gross income (AGI) over $ 100000. Accordingly, The maximum allowable adjusted special loss allowance in the given question is calculated as 25000 - 50 % of (140000 - 10000) which is equal to the $ 5,000.
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