Marina, who owns a 50% interest in a paint store, was a material participant in the activity for the last 25 years. She retired from the paint store at the end of last year and will not participate in the activity in the future. However, she continues to be a material participant in a home decoration store in which she is a 50% partner. The operations of the paint store resulted in a loss for the current year and Marina’s share of the loss is $40,000. Marina’s share of the income from the home decoration store is $75,000. She does not own interests in any other activities.

a. Marina cannot deduct the $40,000 loss from the paint store because she is not a material participant.

b. Marina will not be able to deduct any losses from the paint store until she has been retired for at least four years.

c. none of the above

d. marina can offset the $40,000 loss from the paint store against the $75,000 of income from the home decoration store.

e. marina will not be able to deduct any losses from the paint store until future years