Question
Pamela earns a yearly salary of $150,000. During year 1 she invested $80,000 for a 20% interest in a passive activity. In addition, her share
Pamela earns a yearly salary of $150,000. During year 1 she invested $80,000 for a 20% interest in a passive activity. In addition, her share of the activity's nonrecourse debt is $20,000. Operations of the activity in year 1 resulted in a loss of $500,000, of which Pamela's share is $100,000. She has income for year 1 from another passive activity in the amount of $5,000. For year 1, what is Pamela's deductible loss and suspended loss under the tax basis rules? hat is Pamela's deductible loss and suspended loss under the at risk rules? What is Pamela's deductible loss and suspended loss under the passive activity loss rules?
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