Question
Carrey earns a salary of $350,000, and invests $100,000 for a 30% interest in a passive activity. Operations of the activity result in a loss
Carrey earns a salary of $350,000, and invests $100,000 for a 30% interest in a passive activity. Operations of the activity result in a loss of $400,000, of which Carrey's share is $120,000. How is her loss characterized?
120,000 IS SUSPENDED UNDER PASSIVE LOSS RULES
20,000 IS SUSPENDED UNDER AT RISK RULES AND 100,000 IS SUSPENDED UNDER THE PASSIVE LOSS RULES
120,000 IS SUSPENDED UNDER AT RISK RULES
20,000 IS SUSPENDED UNDER THE PASSIVE LOSS RULES AND 100,000 IS SUSPENDED UNDER AT RISK RULES
NONE OF THE ABOVE
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
