Oriole Corporation has active income of $45,000 and a passive activity loss of $23,000 in the current year.Under an exception, Oriole can deduct the $23,000 loss if it is a personal service corporation.

Question

Quizplus · Accepted Answer

The exception for deducting passive activity losses only applies to certain types of passive activities, not personal service corporations. Therefore, Oriole cannot deduct the $23,000 loss in this case.

Oriole Corporation Has Active Income of $45,000 and a Passive