Tim owns 3 passive investments.During the current year,he has the following income and loss from each activity:
$\begin{array}{lc}
\text { Activity 1 } & \$(7,000) \
\text { Activity 2 } & (3,000) \
\text { Activity } 3 & 4,000
\end{array}$
What is the amount of suspended loss allocated to Activity 2?

Question

Quizplus · Accepted Answer

The total loss from Activities 1 and 2 is $10,000. The income from Activity 3 is $4,000, which can offset part of the loss. The remaining loss of $6,000 is suspended. The suspended loss is allocated proportionally: Activity 2's loss is $3,000, which is 30% of the total $10,000 loss. Therefore, 30% of the $6,000 suspended loss is $1,800.

Tim Owns 3 Passive Investments Activity 1 $(7,000) Activity 2 (3,000) Activity 34,000\begin{array}{lc}\text { Activity 1 } & \$(7,000) \\\text { Activity 2 } & (3,000) \\\text { Activity } 3 & 4,000\end{array} Activity 1 Activity 2 Activity 3​$(7,000)(3,000)4,000​

Tim Owns 3 Passive Investments $\begin{array}{lc}\text { Activity 1 } & \$(7,000) \\\text { Activity 2 } & (3,000) \\\text { Activity } 3 & 4,000\end{array}$