Matt has three passive activities and has at-risk amounts in excess of $100,000 for each.During the year,the activities produced the following income (losses).
Activity A
($60,000)
Activity B
(40,000)
Activity C
75,000
Net passive activity loss
($25,000)
Matt's suspended losses are as follows:

Question

Quizplus · Accepted Answer

The net passive activity loss of $25,000 is allocated to the activities with losses (A and B) in proportion to their losses. Activity A's loss is $60,000 and Activity B's loss is $40,000. The allocation is $15,000 to A and $10,000 to B based on their respective proportions of the total loss.

Matt Has Three Passive Activities and Has At-Risk Amounts in Excess