Walter owns and manages his 50 percent interest in a rental apartment complex.His AGI for the current year is $110,000 excluding his portion of the $70,000 loss from the apartment complex.What is his loss carryover?
A)0
B)$15,000
C)$25,000
D)$35,000

Question

Quizplus · Accepted Answer

Walter's loss carryover is $15,000. This is because his AGI is $110,000, and his share of the loss from the apartment complex is $35,000 (50% of $70,000). The maximum amount of loss that can be carried over is $15,000, which is the amount by which his AGI exceeds his share of the loss.

Walter Owns and Manages His 50 Percent Interest in a Rental