What is the effect on masayas taxable income if he gives


Masaya owns a passive activity that has a basis of $32,000 and a suspended loss of $13,000. Masaya's taxable income from active and portfolio income is $73,000.

  • What is the effect on Masaya's taxable income if he sells the passive activity for $46,000?
  • What is the effect on Masaya's taxable income if he sells the passive activity for $26,000?
  • What is the effect on Masaya's taxable income if he dies this year while the fair market value of the passive activity is $40,000?
  • What is the effect on Masaya's taxable income if he dies this year while the fair market value of the passive activity is $22,000?
  • What is the effect on Masaya's taxable income if he gives the passive activity to his daughter Hideko when the fair market value of the passive activity is $40,000? What would the effect of this be on Hideko's taxable income?

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Management Theories: What is the effect on masayas taxable income if he gives
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