Problem 11-54 (LO. 3, 5, 8) This year Maria works 1,200 hours as a computer...
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Problem 11-54 (LO. 3, 5, 8) This year Maria works 1,200 hours as a computer consultant, 320 hours in a real estate development business, and 400 hours in real estate rental activities. Juan, her husband, works 250 hours in the real estate development business and 180 hours in the real estate rental business. Maria earns $60,000 as a computer consultant, while she and Juan lost $18,000 in the real estate development business and $26,000 in the real estate rental business. How should they treat the losses? Maria ualiies as a material participant in her real estate development business and the $18,000 loss is active b. In the case of the rental loss, Maria's and Juan's hours of participation cannot be aggregated for purposes of the real estate oss is passive c. Can any amount be deducted under the exception for real estate rental property? Of the $26,000 real estate rental passive activity loss generated rental property. can be deducted under the exception for real estate
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