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3 votes
A couple who files a joint tax return has $120,000 of AGI before considering a $40,000 loss from rental real estate activities in which they actively participate. What amount of loss must they carryover to the next year?

$0

$10,000

$15,000

$25,000

None of the above

User Alexpirine
by
8.6k points

1 Answer

1 vote

Answer:

None of the above

Step-by-step explanation:

The joint tax filling has a tax rate of 12% for amounts up to $77,400 and 22% beyond that amount.

If the loss is adjusted in the current year, then the before tax income becomes $80,000. Therefore, the entire loss should be adjusted in the current year as the carryforward will entail a higher tax outflow in the current period.

Therefore, The answer is None of the above.

User Sokid
by
7.9k points
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