AGI

Question 1

Passive Activity Losses w/Phaseout

Answer 1

up to $25,000 Passive Activity Loss allowed reduced:

Actively participates/owns at least 10%

$25,000 Reduced by 50% if AGI over $100k

No deduction if AGI over $150k

$25,000 - [(AGI - $100,0000 x 50%)]

Question 2

Passive Activity Loss Excess

Answer 2

Suspended and carried forward
to offset future passive income
OR
any income if activity is SOLD

Question 3

Schedule for Rents, Royalties

Answer 3

Schedule E

Question 4

Rental Property Categories

Answer 4

Personal - Less than 15 days

Hybrid - More than 14 days AND personal use GREATER of 14 days or 10% of T days rented

Rental - > 14 days NOT used greater of 14 days or 10% of total rental

Question 5

Personal Use

Answer 5

< 15 days rental
No income reported
No expenses deducted

Question 6

Hybrid Rental

Answer 6

Rented > 14 days AND personal use GREATER of

> 14 days OR
10% of Total rented

Report rental income
allocate expenses btwn rental and days rented

Personal use Mortgage/property taxes allowed itemized deductions

Ordering rules ally for deductions for expenses

NO LOSSES ALLOWED

Question 7

Pure Rental

Answer 7

Rented > 14 days AND personal NOT MORE THAN use GREATER of

> 14 days OR
10% of Total rented

Report rental income
Expenses fully deductible subject to passive activity rules

Personal Use Mortgage interest not deductible

Personal use Property taxes - itemized deduction

Allocate rental/personal days

LOSSES ALLOWED