Ilene rents her second home for the entire year. During the year, Ilene reported a net loss of $10,700 from the rental. If Ilene is an active participant in the rental and her AGI is $142,500, how much of the loss can she deduct against ordinary income in the year?

Answers

Answer 1

Answer:

$3,750

Explanation:

(142,500-100000)*50% = 21,250

25,000-21,250 = $3,750

Answer 2

Ilene can claim a deduction up to a maximum limit of $3,750 against her ordinary income for that financial year, in case of meeting with the above conditions.

What is deduction?

Deduction refers to as the amount which a person can claim as being exempt from tax during the year in which a person is liable to pay taxes as such. There is a capacity of standard deduction of $100,000 for a year.

Deduction in the above case will be half of the amount left after considering a standard deduction from the AGI will be $21,250. Now, maximum allowed deduction will be deducted from an amount of $25,000.

This can be calculated as,

[tex]\rm Deduction= Maximum\ Allowed\ Limit- Actual\ Liability\\\\\rm Deduction= 25000 - 21250\\\\\rm Deduction=\$3750[/tex]

Hence, the significance of deduction is aforementioned.

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Match the item with the section of the marketing plan it belongs in. To match the items, click the item, and then click the section.
Match the item with the section of the marketing plan it belongs in.



To match the items, click the item, and then click the section.

The amount you plan to spend on each promotional strategy.

Marketing message

The number of sales you plan to have in the next year.

Product description

Strengths and weaknesses of other companies that provide similar products.

Other marketing goals

The message about your product's benefits that you plan to convey to your target market.

Budget

The percentage of customers who say they are highly satisfied in your customer profile survey.

Competition

The qualities you want to have people associate with your product.

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Promotional strategies

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Financial goals

Answers

Answer:

1. Budget.

2. Financial goals.

3. Competition.

4. Marketing message.

5. Other marketing goals.

6. Brand image goals.

7. Product description.

8. Pricing.

9. Marketing research.

10. Promotional strategies.

Explanation:

1. Budget: The amount you plan to spend on each promotional strategy.

2. Financial goals: The number of sales you plan to have in the next year.

3. Competition: Strengths and weaknesses of other companies that provide similar products.

4. Marketing message: The message about your product's benefits that you plan to convey to your target market.

5. Other marketing goals: The percentage of customers who say they are highly satisfied in your customer profile survey.

6. Brand image goals: The qualities you want to have people associate with your product.

7. Product description: A list of the product's features.

8. Pricing: How the cost of your product will support your brand image and marketing message.

9. Market research: A description of general economic trends and how they are likely to affect the target market.

10. Promotional strategies: Ways you will communicate with your target market.

Answer:

1. Budget.

2. Financial goals.

3. Competition.

4. Marketing message.

5. Other marketing goals.

6. Brand image goals.

7. Product description.

8. Pricing.

9. Marketing research.

10. Promotional strategies.Explanation:

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