Week 3 Homework
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Please provide your answer to each question in the space provided below.
When finished, submit to the DropBox.
Chapter 7
1. In your own words, please describe what a "suspended loss" is, how it is generated, and when it becomes deductible. (5 pts)
2. Please describe "active participation" as it relates to a taxpayer's involvement in an investment in real estate. (5 pts)
Chapter 8
3. Macy had a lot of medical expenses this year that were not covered by her insurance (either due to a deductible, co-insurance, or co-pay). Her un-reimbursed qualifying medical expenses total $8,356 and her AGI for 2014 is $45,000. Assuming she will itemize on her 2014 tax return, how much of her medical expenses will she be able to deduct? (5 pts)
4. Heather and Terry have a mortgage on their primary residence of $750,000, and a mortgage on their vacation home of $410,000. In 2014, they incurred $46,400 of mortgage interest expense. How much, if any, of that interest is deductible on Schedule A? (5 pts)
daglaf
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