Nora acquired passive activity A several years ago that until 2010 was profitable.However,the activity produced losses of $100,000 in 2010 and $50,000 in 2011.Nora had passive income from activity B of $40,000 in 2010 and $0 in 2011.How much loss is suspended from activity A in each year?

Question

Quizplus · Accepted Answer

In 2010, Nora can offset $40,000 of the $100,000 loss from activity A with the passive income from activity B, leaving $60,000 suspended. In 2011, with no passive income to offset, the entire $50,000 loss from activity A is suspended.

Nora Acquired Passive Activity a Several Years Ago That Until