Loren owns three passive activities that had the following results for the current year:
If none of the passive activities are rental real estate activities,what is the amount of suspended loss attributable to Activity C?

Question

Loren owns three passive activities that had the following results for the current year:  ​
If none of the passive activities are rental real estate activities,what is the amount of suspended loss attributable to Activity C?

Quizplus · Accepted Answer

Since none of the passive activities are rental real estate activities, the losses cannot be offset against other passive income. Therefore, the losses from each activity are suspended until the taxpayer has net passive income from another source or until the disposition of the activity. The suspended loss for Activity C is the excess of $25,000 over the $5,000 allowed deduction, which is $20,000.

Loren Owns Three Passive Activities That Had the Following Results