On December 28, 2012, Alan Davis died with passive activity property having an adjusted basis of $90,000, suspended losses of $30,000 and a fair market value on the date of death of $125,000.
(a.) How much passive loss will Alan be allowed on his ﬁnal Form 1040?
(b.) How would your answer change if the fair market value at date of death was $100,000?

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The Answer of On December 28, 2012, Alan Davis died with passive activity property having an adjusted basis of $90,000, suspended losses of $30,000 and a fair market value on the date of death of $125,000.
(a.) How much passive loss will Alan be allowed on his ﬁnal Form 1040?
(b.) How would your answer change if the fair market value at date of death was $100,000?

On December 28, 2012, Alan Davis Died with Passive Activity