Last year,Mr.Margot purchased a limited interest in a business partnership,which is his only passive activity.Last year,he was allocated $14,900 of the partnership's ordinary business loss.This year,he was allocated $7,700 of the partnership's ordinary business income.Which of the following statements is false?

Question

Quizplus · Accepted Answer

All the statements are true. Last year, Mr. Margot could not deduct the passive loss due to passive activity loss limitations. This year, he can offset the $7,700 income with the previous year's loss, and the remaining $7,200 loss will carry forward.

Last Year,Mr