Personal income tax | Accounting homework help

b. Determine if Pat’s AMT exemption will be limited.

His tentative exemption of $[removed] is phased out  at a rate of 25 cents on the dollar when AMTI exceeds $[removed].

If required, round amounts to the nearest dollar.

Computation of AMT Base and Tax  
AMTI $[removed]
AMT exemption [removed]
AMT base $[removed]
 
Tentative AMT

$[removed]

 

   

Problem 11-52 (LO. 2, 3, 7)

Five years ago Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2015, his amount at risk in the activity was $30,000. His shares of the income and losses were as follows:

Year Income (Loss)
2015 ($40,000)
2016 (30,000)
2017 50,000

Gerald holds no suspended at-risk or passive activity losses at the beginning of 2015.

If an answer is zero, enter “0”.

 

 

d.  Assuming Gerald has $50,000 income in 2017, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald’s suspended passive activity losses at the end of 2017 under the at-risk rules and under the passive activity loss rules?
Under the at-risk rules: $[removed]
Under the passive activity loss rules: $[removed]

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