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Which of the following statements regarding passive activity losses is CORRECT? I. When determining the amount of suspended loss that may be used against income,
Which of the following statements regarding passive activity losses is CORRECT?
I. When determining the amount of suspended loss that may be used against income, the atrisk rules are applied before the passive activity loss rules.
II If a loss is not allowed because of the atrisk limitations the loss is a suspended loss eligible for deduction as a disposition of a passive activity.
a
I only
b
II only
c
Both I and II
d
Neither I nor II
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