Maria, who owns a 50% interest in a restaurant, has been a material participant in the restaurant activity for the last 20 years. She retired from this business at the end of last year; however she retained her ownership interest and she continues to be a material participant in a retail store in which she is a 50% general partner. The restaurant produced a loss this year and her share of the loss is $80,000. Her share of the retail store is $150,000. She does not have an interest in any other activities.
a. Maria cannot deduct the $80,000 loss from the restaurant because she is not a material participant.
b. Maria can offset the $80,000 loss against the $150,000 of income from the retail store.
c. Maria will not be able to deduct any losses from the restaurant until she has been retired for at least three years.
d. Assuming that Maria continues to hold the interest in the restaurant, she will always treat the losses as active.
e. None of the above
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Maria, who owns a 50% interest in a restaurant, has been a material participant in the restaurant activity for the last 20 years. She ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
It would be hard to overstate the importance of the Federal Housing Administration (FHA) in the history of housing finance.
Answers (1)
g you are shopping for a new refrigerator and the salesperson tells you get a better deal with the energy efficient model (because of more efficient compressor) even though it costs $1200 versus the standard model which costs $1005.
Answers (1)
How does a thesis statement prepare a reader for the written information they will be reading? A. The thesis statement states the main idea of the writing. B. The thesis statement gives the purpose for writing. C.
Answers (2)
Choose all that apply. Select sources of income. wages from your job a rent check from someone renting a property you own interest deposited into your savings account
Answers (1)
At the end of the current year, $22,650 of fees have been earned but have not been billed to clients. Required: A. Journalize the adjusting entry to record the accrued fees on December 31.
Answers (1)
New Questions in Business
If you purchased a camera in Britain for 100 pounds what would be the price in U. S. dollars if one pound is worth 1.40? A:71 B:100 C:140 D:1400
Answers (1)
You receive three credit scores: 680, 705, 695. what is your average credit score?
Answers (1)
One change that seth mentions is the plantbottle. another is using grape juice instead of sugar to sweeten drinks. what is true about these changes?
Answers (1)
Depasquale Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.51 direct labor-hours. The direct labor rate is $8.60 per direct labor-hour.
Answers (1)
Bruce is a salaried nonexempt employee who earns $42,500 annually, paid semimonthly, plus a 0.25% commission on all regional sales, paid monthly on the first pay date of the following month. During the month of May, the regional sales were $103,500.
Answers (1)