Rita earns a salary of

$150,000

, and invests

$40,000

for a

20%

interest in a passive activity. Operations of the activity result in a loss of

$250,000

, of which Rita's share is

$50,000

. How is her loss characterized?\ a.

$50,000

is suspended under the passive activity loss rules.\ b.

$50,000

is suspended under the at-risk rules.\ c.

$40,000

is suspended under the passive activity loss rules and

$10,000

is suspended under the at-risk rules.\ d.

$40,000

is suspended under the at-risk rules and

$10,000

is suspended under the passive activity loss rules.

Rita earns a salary of $150,000, and invests $40,000 for a 20% interest in a passive activity. Operations of the activity result in a loss of $250,000,0 which Rita's share is $50,000. How is her loss characterized? a. $50,000 is suspended under the passive activity loss rules. b. $50,000 is suspended under the at-risk rules. c. $40,000 is suspended under the passive activity loss rules and $10,000 is suspended under the at-risk rules. d. $40,000 is suspended under the at-risk rules and $10,000 is suspended under the passive activity loss rules