- Question 54 Of 75 Under The Tangible Property Regulations Taxpayers Without Applicable Financial Statements May Elect 1 (167.8 KiB) Viewed 19 times
Question 54 of 75. Under the tangible property regulations, taxpayers without applicable financial statements may elect to apply a de minimis safe harbor election. This election allows them to claim an immediate deduction for Amounts paid for small repair parts that the taxpayer elects to capitalize. Improvements costing less than $200. O Property costing $2,500 or less per invoice or per item. O Repairs to real property costing less than $2,500. Mark for follow up Question 55 of 75. Arthur renovated his rental property and has the following expenditures: $1,300 for removal and replacement of drywall, $400 for painting the drywall, $500 for an electrician to run cable and replace light fixtures, $150 for light bulbs, and $14,000 to replace all the tile floors. How much of the renovation will be considered an improvement if no special election is made? $14,000 45,900 $15,700 O$16,350 Mark for follow up Question 56 of 75. Lola-Rose converted her personal residence to rental property in 2021. She purchased the property in 2011 for $300,000 (including acquisition expenses), of which $75,000 was allocable to the land. She made no improvements. On the date of conversion, an appraisal valued the property at $233,000; $58,250 was allocated to the land. Lola-Rose's basis for depreciation is O $174,750 O $225,000 O $233,000 $300,000 Mark for follow up Question 57 of 75. Maverick rented his home for 14 days and made $8,400 of rental income through an online rental platform. The platform Maverick a Form 1099-K, Payment Card and Third Party Network Transactions, reporting the $8,400 in payments he rece How will he report this to the IRS? He should O Attach a statement to the tax return explaining the amount is excludable as short-term rental income and indicate on the Sche 1 (Form 1040), Part I, 8k, the income is not taxable. O Report the income on Schedule 1 (Form 1040), line 5. O Report the income on Schedule E and attach a statement indicating it's not taxable. Markerer tentathe IRS seeking approval to exclude the income. Question 58 of 75. Which of the following statements accurately describes active participation in a rental real estate activity? O They provide 250 hours of personal service to the rental enterprise. O They are involved in the activity's operations on a regular, continuous, and substantial basis. They make management decisions like approving new tenants, deciding on rental terms, and approving expenditures. O They spend more than half the time in all trades or businesses in real estate activities and spend more than 750 hours in re estate activities.