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Mary Sue Smith holds an investment in a publicly traded partnership (PTP). Her Schedule K- 1 for the current tax year from the PTP indicates
Mary Sue Smith holds an investment in a publicly traded partnership (PTP). Her Schedule K- 1 for the current tax year from the PTP indicates that she should report an ordinary income loss of $3,000. She does not have any previous disallowed losses from this activity. She is also a shareholder in an S corporation, and her ordinary income from the S corporation for the current tax year is $8,000. What amount of income from a passive activity will she need to report for the current tax year?
a) $ 3,000 b) $ 5,000 c) $ 8,000 d) $11,000
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