Vic's at-risk amount in a passive activity is $200,000 at the beginning of the current year. His current loss from the activity is $80,000. Vic had no passive activity income during the year. At the end of the current year:

Question

Quizplus · Accepted Answer

Vic's at-risk amount is reduced by the loss, so it becomes $120,000. Since he has no passive income to offset the loss, the $80,000 loss is suspended.

Vic's At-Risk Amount in a Passive Activity Is $200,000 at the Beginning