NS0-603 Exam Questions

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Full Exam Name: NetApp Certified Hybrid Cloud - Architect
Vendor Name: Network Appliance
Exam Code: NS0-603
Questions with Answers (PDF) 65
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NEW QUESTION: 1
Cobb, an unmarried individual, had an adjusted gross income of $200,000 in 1990 before any IRA
deduction, taxable social security benefits, or passive activity losses. Cobb incurred a loss of $30,000 in
1 990 from rental real estate in which he actively participated. What amount of loss attributable to this
rental real estate can be used in 1990 as an offset against income from nonpassive sources?
A. $12,500
B. $0
C. $25,000
D. $30,000
Answer: B
Explanation:
Explanation
Choice "a" is correct. Cobb may not use any of the loss attributable to his rental real estate as an offset
against income from nonpassive sources in 1990 because he does not qualify for the "Mom and Pop"
exception. Under this exception, up to $25,000 of passive losses and the deduction equivalent of tax
credits that are attributable to rental real estate may be used as an offset against income from nonpassive
sources. This $25,000 allowance is reduced, but not below zero, by 50% of the amount by which the
individual's modified AGI exceeds $100,000. The $25,000 is therefore completely phased out when
modified AGI reaches $150,000. Because Cobb's AGI was $200,000, he did not qualify for the exception.
Choices "b", "c", and "d" are incorrect. Rental activities are passive activities and generally are not
allowed to use any of the loss attributable to the rental activity to offset any income produced from
nonpassive sources. There is a limited exception in the case of losses from rental real estate in which the
taxpayer actively participates, but Cobb did not qualify for it.

NEW QUESTION: 2
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:



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