Mr Garza earned an $85,000 salary and recognized a $12,000 loss on a security sale and a $14,000 gain on the sale of a limited partnership interest His share of the partnerships business income through date of sale was $2,100 (Both the gain and the business income are passive activity income ) Mr G...

Mr Garza can deduct the entire S corporation loss because ...

Mr. Garza earned an $85,000 salary and recognized a $12,000 loss on a security sale and a

Question:

Mr. Garza earned an $85,000 salary and recognized a $12,000 loss on a security sale and a $14,000 gain on the sale of a limited interest. His share of the partnership’s business income through date of sale was $2,100. (Both the gain and the business income are passive activity income.) Mr. Garza was allocated a $13,900 passive activity loss from an S corporation. Compute his AGI. Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...