Kelly,who earns a yearly salary of $120,000,sold an activity with a suspended passive loss of $44,000.The activity was sold at a loss and Kelly has no other passive activities.The suspended loss is not deductible.

Question

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If Kelly sold the activity at a loss, then the suspended passive loss of $44,000 can be deducted to the extent of the loss on the sale. Therefore, the statement "the suspended loss is not deductible" is false.

Kelly,who Earns a Yearly Salary of $120,000,sold an Activity with a Suspended