On the sale of a passive activity, any suspended losses cannot be used to offset income from:
A) interest income.
B) active business income.
C) wages and tips.
D) capital gains.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Suspended losses from a passive activity can be used to offset any type of income, including interest income, active business income, wages and tips, and capital gains, upon the sale of the passive activity.

On the Sale of a Passive Activity, Any Suspended Losses