Vic's atrisk amount in a passive activity is $200,000 at the beginning of the current year.His current loss from the activity is $80,000.Vic had no passive activity income during the year.At the end of the current year:

Question

Vic's at­risk amount in a passive activity is $200,000 at the beginning of the current year.His current loss from the activity is $80,000.Vic had no passive activity income during the year.At the end of the current year:

Quizplus · Accepted Answer

The $80,000 passive loss reduces the at-risk amount to $120,000.The passive loss is suspended because Vic has no passive income.

Vic's At­risk Amount in a Passive Activity Is $200,000 at the Beginning

Vic's Atrisk Amount in a Passive Activity Is $200,000 at the Beginning