Peach Corporation had $210,000 of net active income, $45,000 of portfolio income, and a $230,000 passive loss during the current year. If Peach is a closely held C corporation that is not a PSC, it can deduct $210,000 of the passive loss in the year.

Question

Quizplus · Accepted Answer

Peach Corporation can deduct up to $210,000 of its passive loss because it is a closely held C corporation that is not a PSC.

Peach Corporation Had $210,000 of Net Active Income, $45,000 of Portfolio