Matt has three passive activities and has at-risk amounts in excess of $100,000 for each.During the year,the activities produced the following income (losses). Activity A ($60,000) Activity B (40,000) Activity C 75,000 Net passive loss ($25,000) Matt's suspended losses are as follows:

Question

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The net passive loss of $25,000 is allocated proportionally to the activities with losses. Activity A has a loss of $60,000 and Activity B has a loss of $40,000. The allocation is based on the proportion of each activity's loss to the total loss of $100,000. Thus, $15,000 is allocated to A and $10,000 to B.

Matt Has Three Passive Activities and Has At-Risk Amounts in Excess