Comp SM_Ch11 - CHAPTER 11 PASSIVE ACTIVITY LOSSES SOLUTIONS...

CHAPTER 11
PASSIVE ACTIVITY LOSSES
SOLUTIONS TO PROBLEM MATERIALS
Status: Q/P
Question/ Present in Prior
Problem Topic Edition Edition
1 General purpose and effect of the at-risk and passive
activity loss rules
Unchanged 1
2 At-risk amount Unchanged 2
3 Changes in at-risk amount Unchanged 3
4 At-risk and passive loss limits Modified 4
5 Descriptions of active, portfolio, and passive income Unchanged 5
6 Preference as to active or passive classification Unchanged 6
7 Preference as to active or passive classification Unchanged 7
8 Suspended passive losses New
9 Treatment of suspended losses and credits on
disposition of an activity
Unchanged 9
10 Taxpayers subject to passive loss rules Unchanged 10
11 Passive loss of a personal service corporation New
12 Appropriate economic unit Unchanged 12
13 Nature of passive activity Unchanged 13
14 Rental activity grouping New
15 Material participation significance Unchanged 15
16 The 500-hour standard for material participation Unchanged 16
17 Passive or active loss determination Unchanged 17
18 Planning for material participation status Unchanged 46
19 Issue ID Unchanged 18
20 Work that qualifies for material participation standard Unchanged 19
21 Issue ID Unchanged 20
22 Significant personal services New
23 Extraordinary personal services: nature and importance Unchanged 22
24 Passive activity definition Unchanged 23
11-1

11-2 2005 Comprehensive Volume/Solutions Manual
Status: Q/P
Question/ Present in Prior
Problem Topic Edition Edition
1 General purpose and effect of the at-risk and passive
activity loss rules
Unchanged 1
2 At-risk amount Unchanged 2
3 Changes in at-risk amount Unchanged 3
4 At-risk and passive loss limits Modified 4
25 Rental business: active versus passive Unchanged 24
26 Real estate professional classification Unchanged 25
27 Issue ID New
28 Issue ID Unchanged 27
29 Real estate activity exceptions Unchanged 29
30 Deduction equivalent: definition and computation Unchanged 30
31 Differences between material and active participation New
32 Issue ID Unchanged 31
33 At-risk rules Unchanged 32
34 At-risk rules Unchanged 33
35 At-risk rules Modified 34
* 36 Passive loss offsets passive income Unchanged 35
37 Passive activity loss rules: general application Unchanged 36
38 Passive activity loss rules: general application Unchanged 37
* 39 Passive activity loss rules: general application Modified 38
40 Treatment of suspended losses Unchanged 39
* 41 Sale of passive activity and suspended losses Modified 40
42 Sale of passive activity New
* 43 Sale of passive activity and suspended losses Unchanged 41
44 Passive losses of personal service corporation Unchanged 43
45 Passive losses of corporations Unchanged 44
46 Passive, active, portfolio income of closely held
corporation
Unchanged 45
* 47 Character of property: held as investment property or
rental property
New
48 Interaction of at-risk and passive loss rules New
49 Suspended losses under at-risk and passive loss rules New
50 Interaction of at-risk and passive loss rules New
* 51 Passive loss deduction amounts Unchanged 51
52 Rental loss: