A taxpayer had the following for the current year:
$\begin{array}{lrrr}
&\text { Active } & \text { Portfolio } & \text { Passive } \
&\text { Income }&\text { Income }&\text { Income }\
\text { Income } & \$ 75,000 & \$ 22,000 & \$ 55,000 \
\text { Deductions }&(45,000) &(16,000) &(110,000)\
\text { Income(Loss) } & \$ 30,000 & \$ 6,000 & \$(55,000)
\end{array}$
I.If the taxpayer is a closely held corporation,taxable income from the three activities is income of $6,000.
II.If the taxpayer is an individual and the passive income is not related to a rental real estate activity,taxable income is $36,000.

Question

Quizplus · Accepted Answer

Both statements are correct. The taxable income from the three activities is $6,000 for a closely held corporation and $36,000 for an individual if the passive income is not related to a rental real estate activity.

A Taxpayer Had the Following for the Current Year IIf the Taxpayer Is a Closely Held Corporation,taxable Income from