Question 1

Mary Jane participates for 100 hours during the year in an activity she owns. She has no employees and is the only participant in the activity. The activity is a significant participation activity.

Accepted Answer

A) True 
 B)False

Question 2

Describe the general rules that limit the deduction of investment interest expense.

Accepted Answer

The deduction of investment interest exp...

Question 3

Jenny spends 32 hours a week, 50 weeks a year, operating a DVD rental store that she owns.She also owns a music store in another city that is operated by a full-time employee.Jenny spends 140 hours per year working at the music store.She elects not to group them together as a single activity under the "appropriate economic unit" standard.

Accepted Answer

A)  Neither store is a passive activity.
B)  Both stores are passive activities.
C)  Only the DVD rental store is a passive activity.
D)  Only the music store is a passive activity.
E)  None of the above.F) A) and B)
G) C) and D)

Exam 11: Investor Losses

Correct Answer
verified

Mary Jane participates for 100 hours during the year in an activity she owns. She has no employees and is the only participant in the activity. The activity is a significant participation activity.

Correct Answer
verified

Describe the general rules that limit the deduction of investment interest expense.

Correct Answer
verified
The deduction of investment interest exp...
View Answer

Exam 11: Investor Losses

Correct AnswerverifiedShow Answer

Mary Jane participates for 100 hours during the year in an activity she owns. She has no employees and is the only participant in the activity. The activity is a significant participation activity.

Correct AnswerverifiedShow Answer

Describe the general rules that limit the deduction of investment interest expense.

Correct AnswerverifiedThe deduction of investment interest exp...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The deduction of investment interest exp...
View Answer