Carrey earns a salary of $350,000, and invests $100,000 for a 30% interest in a passive activity.
Fantastic news! We've Found the answer you've been seeking!
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 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
Expert Answer:
Posted Date:
