During the current year, Violet, Inc., a closely held corporation (not a PSC), has $55,000 of passive activity loss, $80,000 of net active income, and $20,000 of portfolio income. How much is Violet's taxable income for the current year?
A) $20,000
B) $45,000
C) $80,000
D) $100,000
E) None of the above

Question

Quizplus · Accepted Answer

Violet's taxable income is $45,000. The passive activity loss is not deductible against the net active income or portfolio income. The portfolio income is not included in the calculation of taxable income.

During the Current Year, Violet, Inc