In 2014, Susan retired from her active participation in a 50% owned restaurant business, which she owned for 20 years. Susan is also a material participant in a clothing store which she has a 50% ownership. Susan actively participate in the clothing store in 2016. The restaurant generated an exist80,000 loss, and the clothing store produced exist150,000 in income in 2016. These amounts are Susan's share of each activity. Susan does not participate nor own any other business. Susan cannot deduct the exist80,000 loss from the restaurant because she is not a material participant. Susan can offset the exist80,000 loss against the exist150,000 of income from the retail store. Susan will not be able to deduct any losses from the restaurant until she has been retired for at least three years. Assuming Susan continues to hold the interest in the restaurant, she will always treat the losses as active