Problem: Federal Taxes & Management Decisions
Mary Beth is a CPA, devoting 3,000 hours per year to her practice. She also owns an office building in which she rents out space to tenants. She devotes none of her time to the management of the office building. She has a property management firm make all management decisions for her. During 2020, she incurred a loss, for tax purposes, of $30,000 on the office building. How must Mary Beth treat the loss on her 2020 tax return?
In 2020, Joan Cannon incurred the following expenses relating to her vacation home:
-Mortgage Interest $6,000
-Property Taxes $4,000
-Utility Expenses $4,000
-Depreciation $6,000
-Total Expenses $20,000
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.