Chapter 4 - Schedule E: Passive Activities/BARPAL
Mastering Schedule E: Passive Activities Quiz
Test your knowledge on tax implications and limitations surrounding Schedule E passive activities. This quiz covers various scenarios that taxpayers may encounter regarding deductions, losses, and tax codes.
By participating in this quiz, you will learn about:
- Passive activities and their classifications
- Limitations on losses
- Proper reporting methods for asset dispositions
Which of the following input screen activities could be considered passive activities?
K1
Rental
Farm
Farm Rental
All Of the Above
Which passive activity codes are considered non-passive?
2 and 4
3 and 4
1 and 4
1 and 3
1 and 2
2 and 3
When losses are limited on a tax return what 3 components should you be looking at? Mark all that apply.
The basis rules
The non-passive rules
The at-risk limitations
The passive activity limitations
Credits allowed
In what situation would the full amount of losses be allowed, even when there is no basis?
Entire disposition of the activity
The activity is a Publicly Traded Partnership
Net income greater than $150,000
None of the above
My client is filing Married Filing Separate – he has a single rental activity with a loss and his income is well below the limit to qualify for the Special Allowance but UltraTax is disallowing it.True/False The reason the taxpayer does not qualify for the special allowance is because they are married filing separate
True
False
Using the same client as the previous question, the Summer's decided the losses from the vacation home were too much and decided to sell the house. Where should the sale of the home be entered in order to NOT have it calculate a gain on the sale?
Personal Sale folder > Home tab
Personal Sale folder > Sale tab
Edit the asset > Disposal tab > choose Sold/Scrapped
Turn off the asset tab, Rental folder > Sale tab
Income folder > B&D tab > Schedule for detail statement
When disposing of an asset which options will never result in a gain or loss from the disposition?
Retired
Like Kind Exchange
Casualty Theft
Sold/Scrapped
Out Of Service
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