In the current tax year for regular tax purposes, Avery reports $65,000 of income and $190,000 of deductions from passive activities.For AMT purposes, the passive activity income amount is unchanged, but deductions from passive activities total $150,000. What is Avery's suspended passive loss for regular tax and for AMT purposes?
A)$0; $0.
B)$(40,000); $(40,000).
C)$(125,000); $(85,000).
D)$(190,000); $(150,000).

Question

Quizplus · Accepted Answer

The suspended passive loss for regular tax purposes is $125,000 ($190,000 deductions - $65,000 income). For AMT purposes, the deductions from passive activities are limited to $150,000, so the suspended passive loss is $85,000 ($190,000 - $150,000).

In the Current Tax Year for Regular Tax Purposes, Avery