Unformatted text preview: activity as a material participant and (2) participating in the rental activity for more than 750 hours, the loss will be treated as passive. She may deduct the loss only against passive income. If Mary Beth had qualifi ed as an active participant (i.e., made management decisions regarding rental fees,etc.), she might have been able to deduct up to $25,000 of the loss against nonpassive income. 40. a. $600—Ordinary income property given to a charity is limited to basis. b. $7,000—The general rule is that when property is given to private charities, the fair market value is used. c. $6,000—Since the asset is to be sold, it has unrelated use and the fair market value must be reduced by the gain....
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- Spring '10
- Corporation, passive income, Mary Beth, Portfolio Income