Question 1

Sandra acquired a passive activity three years ago.Until last year, the activity was profitable and her at-risk amount was $300,000.Last year, the activity produced a loss of $100,000, and in the current year, the loss is $50,000.Assuming Sandra has received no passive income in the current or prior years, her suspended passive loss from the activity is:

Accepted Answer

A)  $90,000 from last year and $50,000 from the current year.
B)  $100,000 from last year and $50,000 from the current year.
C)  $0 from last year and $0 from the current year.
D)  $50,000 from the current year.
E)  None of the above.F) A) and B)
G) B) and C)

Question 2

When a taxpayer disposes of a passive activity by death, what happens to any unused passive losses?

Accepted Answer

A transfer of a taxpayer's interest in a...

Question 3

Pat sells a passive activity for $100,000 that has an adjusted basis of $55,000.During the years of her ownership, $60,000 of losses have been incurred that were suspended under the passive activity loss rules.In addition, the passive activity generated tax credits of $10,000 that were not utilized and suspended.Determine the tax treatment to Pat on the disposition of the property.

Accepted Answer

Because Pat disposes of her entire inter...

Exam 11: Investor Losses

Correct Answer
verified
Because Pat disposes of her entire inter...
View Answer

When a taxpayer disposes of a passive activity by death, what happens to any unused passive losses?

Correct Answer
verified
A transfer of a taxpayer's interest in a...
View Answer

Correct Answer
verified

Exam 11: Investor Losses

Correct AnswerverifiedBecause Pat disposes of her entire inter...View AnswerShow Answer

When a taxpayer disposes of a passive activity by death, what happens to any unused passive losses?

Correct AnswerverifiedA transfer of a taxpayer's interest in a...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
Because Pat disposes of her entire inter...
View Answer

Correct Answer
verified
A transfer of a taxpayer's interest in a...
View Answer

Correct Answer
verified