Dorothy acquired a 100% interest in two passive activities: Activity A in January 2013 and Activity B

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Dorothy acquired a 100% interest in two passive activities: Activity A in January 2013 and Activity B in 2014. Through 2016, Activity A was profitable, but it produced losses of $200,000 in 2017 and $100,000 in 2018. Dorothy has passive activity income from Activity B of $20,000 in 2017 and $40,000 in 2018. After offsetting passive activity income, how much of the net losses may she deduct?

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South-Western Federal Taxation 2019 Comprehensive

ISBN: 9781337703017

42th Edition

Authors: David M. Maloney, William A. Raabe, William H. Hoffman, James C. Young

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