In the current year, Spring Corporation, a closely held personal service corporation, has $120,000 of passive losses, $70,000 of active business income, and $50,000 of portfolio income.How much of the passive loss may Spring deduct in the current year?

Question

Quizplus · Accepted Answer

Passive losses can only be deducted against passive income. Since Spring Corporation has no passive income, it cannot deduct any of the passive losses in the current year.

In the Current Year, Spring Corporation, a Closely Held Personal