33. Ramone is a tax attorney and he also owns an office building that
he rents for $8,500 /month. He is responsible for paying all taxes and
expenses relating to the building’s operation and maintenance. Is
Ramone engaged in the trade or business of renting real estate?
34. Kelvin owns and lives in a duplex. He rents the other unit for $750
per month. He incurs the following expenses during the current year
for the entire property:
How are the expenditures treated for tax purposes? On what tax
form(s) are these amounts reported?
35. In the current year, Sandra rented her vacation home for 75 days,
used it for personal use for 22 days, and left it vacant for the
remainder of the year. Her income and expenses are as follows:
What is Sandra’s net income or loss from the activity? Use the tax
court method.
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ACC 401 Week 3 Quiz (UOP)
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QUIZ 3
1) Which one of the following is Section 1231 property?
2) Which of the following expense items is (are) deductible as rental
expense?
3) If an activity is considered a hobby, which of the following is true?