White Corporation, a personal service corporation, had $75,000 of active income, $15,000 of portfolio income, and a $90,000 passive loss during the year.How much of the passive loss is deductible?
A)$0.
B)$15,000.
C)$75,000.
D)$90,000.
E)None of the above.

Question

Quizplus · Accepted Answer

Passive losses can only be deducted against passive income. Since White Corporation has no passive income, none of the $90,000 passive loss is deductible.

White Corporation, a Personal Service Corporation, Had $75,000 of Active