Question
6 Rita earns a salary of $150,000, and invests $40,000 for a 20% interest in a passive activity. Operations of the activity result in a
6 Rita earns a salary of $150,000, and invests $40,000 for a 20% interest in a passive activity. Operations of the activity result in a loss of $250,000, of which Rita's share is $50,000. How is her loss characterized? $50,000 is suspended under the at-risk OA rules OB $50,000 is suspended under the passive activity loss rules $10,000 is suspended under the passive activity loss rules and $40,000 is suspended under the at-risk rules OD. Risa loss is not limited because her salary exceeds the passive loss amount OE $40,000 is suspended under the passive activity loss rules and $10,000 is suspended under the at-risk rules 3 points Save Antwer
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