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Fred's At-Risk Amount in a Passive Activity Is $50,000 at the Beginning

Question 60

Multiple Choice

Fred's at-risk amount in a passive activity is $50,000 at the beginning of the current year. His current loss from the activity is $60,000. He had no passive activity income during the year. At the end of the year, which of the following statements is incorrect?


A) Fred has a loss of $50,000 suspended under the passive loss rules.
B) Fred has an at-risk amount in the activity of $0.
C) Fred has a loss of $10,000 suspended under the at-risk rules.
D) Fred has a loss of $60,000 suspended under the passive loss rules.

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