1a. Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1990. He also acquired a rental house in 2016, which he actively manages. During 2016, Walter's share of the partnership's losses was $10,000, and his rental house generated $41,000 in losses. Walter's modified adjusted gross income before passive losses is $141,000.
Calculate the amount of Walter's allowable deduction for rental house activities for 2015.
Calculate the amount of Walter's allowable deduction for the partnership losses for 2015.
What may be done with the unused losses, if anything?
1b. In June of 2016, Keith Silva accepts a new job with the same employer in San Diego. He formerly commuted 12 miles to a job in Canton, OH; San Diego is 2,150 miles from his old home. He incurs the following expenses in his move from Ohio in 2016:
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Moving and packing charges
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$4,900
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Lodging during the move
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900
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Meals during the move
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350
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Travel during the move
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300
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Total
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$6,650
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Keith is not reimbursed for any of these expenses by his employer. What is the amount of Keith's moving expense deduction?
Assume Keith's employer reimburses him $4,200 for the move. Using the information from Problem 5, calculate Keith's moving expenses deduction using Form 3903.