Several years ago, Joy acquired a passive activity. Until 2016, the activity was profitable. Joy's at-risk amount at the beginning of 2016 was $250,000. The activity produced losses of $100,000 in 2016, $80,000 in 2017, and $90,000 in 2018. During the same period, no passive activity income was recognized. How much is suspended under the at-risk rules and the passive activity loss rules at the beginning of 2019?

$ \begin{array}{lr}
\underline {\text { At-risk }}&\underline {\text { Passive activity loss }}\
a.\$ 0 & \$ 270,000 . \
b.\$ 20,000 . & \$ 250,000 . \
c. \$ 30,000 . & \$ 240,000 . \
d. \$ 260,000 . & \$ 10,000 .
\end{array} $

Question

Several years ago, Joy acquired a passive activity. Until 2016, the activity was profitable. Joy's at-risk amount at the beginning of 2016 was $250,000. The activity produced losses of $100,000 in 2016, $80,000 in 2017, and $90,000 in 2018. During the same period, no passive activity income was recognized. How much is suspended under the at-risk rules and the passive activity loss rules at the beginning of 2019?

\begin{array}{lr}\underline {\text { At-risk }}&\underline {\text { Passive activity loss }}\\a.\$ 0 & \$ 270,000 . \\ b.\$ 20,000 . & \$ 250,000 . \\c. \$ 30,000 . & \$ 240,000 . \\d. \$ 260,000 . & \$ 10,000 .\end{array}

$ \begin{array}{lr}
\underline {\text {  At-risk }}&\underline {\text {   Passive activity loss }}\
a.\$ 0 & \$ 270,000 . \ 
b.\$ 20,000 . & \$ 250,000 . \
c. \$ 30,000 . & \$ 240,000 . \
d. \$ 260,000 . & \$ 10,000 .
\end{array} $

Quizplus · Accepted Answer

The Answer of Several years ago, Joy acquired a passive activity. Until 2016, the activity was profitable. Joy's at-risk amount at the beginning of 2016 was $250,000. The activity produced losses of $100,000 in 2016, $80,000 in 2017, and $90,000 in 2018. During the same period, no passive activity income was recognized. How much is suspended under the at-risk rules and the passive activity loss rules at the beginning of 2019?

$ \begin{array}{lr}
\underline {\text {  At-risk }}&\underline {\text {   Passive activity loss }}\
a.\$ 0 & \$ 270,000 . \ 
b.\$ 20,000 . & \$ 250,000 . \
c. \$ 30,000 . & \$ 240,000 . \
d. \$ 260,000 . & \$ 10,000 .
\end{array} $

Several Years Ago, Joy Acquired a Passive Activity