Peach Corporation had $135,000 of active income,$180,000 of portfolio income,and a $155,000 passive loss during the year.If Peach is a closely held C corporation that is not a PSC,it can deduct the $155,000 passive loss.

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If Peach is a closely held corporation,the passive loss is deductible to the extent of the corporation's active income,or $135,000.

Peach Corporation Had $135,000 of Active Income,$180,000 of Portfolio Income,and