In 2012, Amber had a $100,000 loss on a passive activity.None of the loss is attributable to AMT adjustments or preferences.She has no other passive activities.Which of the following statements is correct?
A)In 2012, Amber can deduct $100,000 for regular income tax purposes and for AMT purposes.
B)Amber will have a $100,000 tax preference in 2012 as a result of the passive activity.
C)For regular income tax purposes, none of the loss is allowed in 2012.
D)In 2012, Amber will have a positive adjustment of $25,000 as a result of the passive loss.
E)None of the above.

Question

Quizplus · Accepted Answer

Passive activity losses are generally not deductible against non-passive income for regular tax purposes, so none of the loss is allowed in 2012.

In 2012, Amber Had a $100,000 Loss on a Passive