Wess at-risk amount in a passive activity is $25,000 at the beginning of the current year. His current loss from the activity is $35,000 and he has no passive activity income. At the end of the current year, which of the following statements is incorrect?

	a.	Wes has a loss of $25,000 suspended under the passive loss rules.
	b.	Wes has an at-risk amount in the activity of $0.
	c.	Wes has a loss of $10,000 suspended under the at-risk rules.
	d.	Wes has a loss of $35,000 suspended under the passive loss rules.
	e.	None of the above is incorrect.

ANSWER:	d
RATIONALE:	The at-risk amount of $25,000 is reduced to zero by $25,000 of the passive loss. As a result, the $10,000 unused loss is suspended under the at-risk rules. The $25,000 of passive loss is suspended under the passive loss rules because Wes has no passive income.

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