Noah Yobs, age 55, who has $63,400 of AGI (solely from wages) before considering rental activities, has $57,060 of losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity from which he has $31,700 of income. He has other passive activity income of $20,288. Required:
What amount of rental loss can be used to offset active or portfolio income?

James is an employee in the widget inspection department of xyz systems, a government contractor. james was part of a 3-person inspection team that found a particular batch of widgets did not meet the exacting requirements of the u.s. government. in order to meet the tight deadline and avoid penalties under the contract, james' boss demanded that the batch of widgets be sent in fulfillment of the government contract. when james found out, he went to the vice president of the company and reported the situation. james was demoted by his boss, and no longer works on government projects. james has a: