On the sale of a passive activity,any suspended losses can be used to offset income from:
A)other passive activities
B)capital gains
C)interest income
D)wages and tips
E)All of the choices are correct

Question

Quizplus · Accepted Answer

Suspended losses from a passive activity can be used to offset income from any passive activity, capital gains, interest income, and even wages and tips if the taxpayer materially participated in the activity in the year of disposal.

On the Sale of a Passive Activity,any Suspended Losses Can