Which of the following statements about treatment of net passive activity losses of an individual is correct? A. Passive activity losses in excess of passive activity income are permanently disallowed. B. Net passive activity losses can be offset against portfolio income in the current year. C. Net passive activity losses are suspended and carried forward to offset passive income of future years. D. A taxpayer can elect either to offset net passive activity losses against active and portfolio income or to carry the losses forward to future years