1. R engages in several different business activities. You are to determine the net impact to Rs AGI for the current year based on the following:

Net Result

R materially participated in the R & T partnership $15,000 profit

R did not materially participate in CC Corporation, an S Corp. ($20,000) loss

R did not materially participate in X Co., his sole proprietorship $10,000 profit

R is employed at RX Corp. as the director of marketing $50,000 salary

R did not materially participate in PQX, a limited partnership ($30,000) loss

1. Rs AGI would be?

1. Identify the amount of any losses not deductible on the current return.

1. What happens to the losses that are not currently deductible?