Bill has a $15,000 passive loss, a $12,000 passive gain, $20,000 of active income, and a $14,000 active loss.What is Bill's current year net taxable income or loss?

Question

Quizplus · Accepted Answer

Bill's net taxable income is $6,000. This is calculated by adding his active income ($20,000) and passive gain ($12,000), and then subtracting his passive loss ($15,000) and active loss ($14,000).

Bill Has a $15,000 Passive Loss, a $12,000 Passive Gain