How much can Fred deduct in 2004 and 2005?

33. In 2004, Fred invested $50,000 in a general partnership. Fred’s interest is not considered to be a passive activity. His share of the partnership losses was $35,000 in 2004 and $25,000 in 2005. How much can Fred deduct in 2004 and 2005?

If the activity is a bakery and Ray is not a material participant, what is his AGI?

40. Ray acquired an activity several years ago, and in 2005, it generated a loss of $50,000. Ray has AGI of $140,000 before considering the loss from the activity. If the activity is a bakery and Ray is not a material participant, what is his AGI?

Use the following data to calculate Reba’s AMT base in 2005

31. Use the following data to calculate Reba’s AMT base in 2005: Taxable income $190,000 Positive AMT adjustments 95,000 Negative AMT adjustments 85,000 AMT preferences 28,000 Reba will file as a head of household.

Compute their tentative minimum tax

56. Rosa and Steve, who are married, had taxable income of $225,000 for 2005. They had positive AMT adjustments of $40,000, negative AMT adjustments of $10,000, and tax preference items of $67,500. a. Compute their AMTI. b. Compute their tentative minimum tax.

The Cardinal Wholesale Company: Tax calculation/S corporation

The Cardinal Wholesale Company is an S corporation that began business on March 1, 2005. Robert, a calendar year taxpayer, owns 100% of the Cardinal stock. He has $400,000 taxable income from other sources each year. Robert will work approximately 30 hours a week for the corporation. Cardinal sells swimming pool supplies, and its natural business year ends in September. Approximately 80% of Cardinal’s gross receipts occur in June through September. a. What tax year should Cardinal elect, assuming that Robert anticipates the company will produce a net profit for all years? b. What tax year should Cardinal elect, assuming it will lose $10,000 a month for the first 12 months and an averag... click for more