Kenzie and Ross equally own rental real estate. The rental property generated a loss of $20,000. Kenzie is also employed as a part-time Tupperware salesperson and full time as a real estate agent. For her share of the loss to be fully deductible, she must:
I.Not have an adjusted gross income in excess of $100,000.
II.Spend more than 750 hours, in total, as a realtor
III.Spend more than 100 hours managing the rental activity, and spend more time than Ross.
IV.She must spend more than 50% of her time as a realtor and must own more than 5% of the real estate agency.

Question

Kenzie and Ross equally own rental real estate. The rental property generated a loss of $20,000. Kenzie is also employed as a part-time Tupperware salesperson and full time as a real estate agent. For her share of the loss to be fully deductible, she must:
I.Not have an adjusted gross income in excess of $100,000.
II.Spend more than 750 hours, in total, as a realtor
III.Spend more than 100 hours managing the rental activity, and spend more time than Ross.
IV.She must spend more than 50% of her time as a realtor and must own more than 5% of the real estate agency.
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Quizplus · Accepted Answer

Statements II, III, and IV are correct. The loss is fully deductible if Kenzie spends more than 750 hours as a realtor, more than 100 hours managing the rental activity, and more time than Ross, and she must spend more than 50% of her time as a realtor and must own more than 5% of the real estate agency.

Kenzie and Ross Equally Own Rental Real Estate