Lewis died during the current year. Lewis owned passive activity property with a FMV of $61,000 and a basis of $48,000. Suspended losses of $15,000 were attributable to the property. How much of the suspended loss is deductible on Lewis's final income tax return?

Question

Quizplus · Accepted Answer

The suspended loss is deductible up to the amount of the gain recognized on the disposition of the property. The gain is $61,000 - $48,000 = $13,000. Therefore, the deductible loss is $13,000.

Lewis Died During the Current Year