If a taxpayer has the following for the current year: I. If the taxpayer is a regular corporation, taxable income from the three activities is a loss of $19,000. II. If the taxpayer is an individual and the passive income is related to a rental real estate activity in which the taxpayer is an active participant, taxable income is $11,000.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.

Question

If a taxpayer has the following for the current year:  I. If the taxpayer is a regular corporation, taxable income from the three activities is a loss of $19,000. II. If the taxpayer is an individual and the passive income is related to a rental real estate activity in which the taxpayer is an active participant, taxable income is $11,000.
A) Only statement I is correct. 
B) Only statement II is correct. 
C) Both statements are correct. 
D) Neither statement is correct.

Quizplus · Accepted Answer

The Answer of If a taxpayer has the following for the current year:  I. If the taxpayer is a regular corporation, taxable income from the three activities is a loss of $19,000. II. If the taxpayer is an individual and the passive income is related to a rental real estate activity in which the taxpayer is an active participant, taxable income is $11,000.
A) Only statement I is correct. 
B) Only statement II is correct. 
C) Both statements are correct. 
D) Neither statement is correct.

If a Taxpayer Has the Following for the Current Year