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N id s7,s00 criting December 31, 2018 with a 576 isterest rate deductiou? Wlback the remainder of the loan. How 7. Nins loans 15,000 to Jeff on year and informa Nina that he will of paye nmach carn e, Nina L yen, and '%) A rma, nstallan m ry l, 2017, She drafb" finmal "greement with Jeff $7,500 because Jeff has alroadly paid off balf of the debe Nothing because Jeff has paid off a portion of the detai e. $3,000 because the noebusiness b the nnte is between t bad delbst is treated as d. Nothing because the note is between friends. 18, Javier owns a 10% interest in a limited partnership During Deses,000. rental loss of $50,000, Javier had other income: lKow much of the reatal loss can Javier use to offiet his other the year, the partnership loss caa Javier res of incoe: Wages $65,000, interest incosme $5,000. other income? b. $5,000 e. $10,000 d. $50,000 19. Ralph is a plumber and lives in Seattle. He owns a rental property in Denverent company year to check on the property, but the rest of the year he pays a property management company to collect loss? E regarding the tax treatment of Ralph's rental a. Ralph can take a loss on his rental operations because he materially participates in the activity Ralph cannot take a loss on his rental substantial basis. operations because he is not involved on a regular, continuous, or c. Ralph can take a loss because rental properties are automatically considered active. d. The loss is a net operating loss and can be crried forward indefinitely 20. A passive loss can only be deducted to the extent of passive income, the forward unused loss can be carried True b. False

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