In 2013, Susan retired from her active participation in a 50% owned restuarant business, which she owned for 20 years. Susan is also a material participant in a clothing store which she has a 50% ownership. Susan continues to actively participate in the clothing store in 2015. The restaurant generated an $80,000 loss, and the clothing store produced $150,000 in income in 2015. These amounts are Susan's share of each activity. Susan does not participate nor own any other business.

a.	Susan cannot deduct the $80,000 loss from the restaurant because she is not a material participant.
	b.	Susan can offset the $80,000 loss against the $150,000 of income from the retail store.
	c.	Susan will not be able to deduct any losses from the restaurant until she has been retired for at least three years.
	d.	Assuming Susan continues to hold the interest in the restaurant, she will always treat the losses as active.