Jana reports the following income and loss: Activities A,B,and C are all passive activities. Based on this information,Jana has the following suspended losses:

Question

Jana reports the following income and loss:  Activities A,B,and C are all passive activities. Based on this information,Jana has the following suspended losses:

Quizplus · Accepted Answer

Suspended losses occur when a taxpayer does not have enough passive income to offset their passive losses. From the given information, Jana's passive loss from Activity A is $15,000 and her passive income from Activity B is $10,000. This results in a suspended loss of $5,000. Similarly, Jana's passive loss from Activity C is $8,000 and her passive income from Activity B is $10,000. This results in a suspended loss of $2,000. Therefore, the total suspended loss is $7,000, which is option D.

Jana Reports the Following Income and Loss: Activities A,B,and