Joy reports the following income and loss:

Activities A,B,and C are all passive activities.
Based on this information,Joy has

Question

Joy reports the following income and loss:

Activities A,B,and C are all passive activities.
Based on this information,Joy has

Quizplus · Accepted Answer

C) The losses from passive activities B and C may offset and eliminate the income from passive activity A resulting in a net passive loss of $30,000 ($60,000 income less $90,000 loss). The passive loss of $30,000 may not offset the salary and must be carried over to the next tax year.

Joy Reports the Following Income and Loss