Week 3 Homework Assignment

Week 3 Assignments Chapter 7 7. disunite between the following active income, passive income, and portfolio income. 13. Briefly, what is material participation? wherefore is the determination of whether a taxpayer materially participates important? 46. Mary Beth is a CPA, devoting 3,000 hours per form to her practice. She also owns an major power building in which she rents out space to tenants. She devotes none of her time to the management of the office building. She has a property management riotous make all management decisions for her.During 2012, she incurred a loss, for tax purposes, of $30,000 on the office building. How must Mary Beth treat this loss on her 2012 tax exceed? 34. Mike and Sally Card file a joint come down for the 2012 tax family. Their adjusted gross income is $65,000 and they incur the following interest expenses enthronement income and related expenses amount to $7,000 and $500, respectively. What is Mike and Sallys interest deduction for the 2012 t ax year? 40. In each of the following independent cases determine the amount of charitable contributions allowed the individual before consideration of any percentage limitations. a.Charlie Chubbs contributed an item of stock from his sole proprietorship to a public charity for its practice. The good marketplace apprize of the asset was $800 and his basis was $600. b. Durwood Dodson contributed some shares of common stock that he had held long-term to a private charity. The basis of the stock was $8,000 and it had a fair market value of $7,000. c. Esther Ensign contributed tangible personal property that she had held long-term to a public charity. The asset had a fair market value of $10,000 and a basis of $6,000. The charity intended to sell the asset and use the proceeds for charitable purposes.