Linda owns three passive activities that had the following results for the current year:
$\begin{array}{lc}
\text { Passive Activity A } & \$(4,500) \
\text { Passive Activity B } & 20,000 \
\text { Passive Activity C } & (25,500)
\end{array}$
If none of the passive activities are rental real estate activities,what is the amount of suspended loss attributable to Activity A?

Question

Quizplus · Accepted Answer

The total passive loss is $30,000 ($4,500 + $25,500), and the total passive income is $20,000. The net passive loss is $10,000 ($30,000 - $20,000). The loss is allocated proportionally to the activities with losses. Activity A's loss is $4,500, which is 15% of the total loss ($4,500/$30,000). Therefore, the suspended loss for Activity A is 15% of $10,000, which is $1,500.

Linda Owns Three Passive Activities That Had the Following Results