Several years ago,Joy acquired a passive activity.Until 2009,the activity was profitable.Joy's at-risk amount at the beginning of 2009 was $250,000.The activity produced losses of $100,000 in 2009,$80,000 in 2010,and $90,000 in 2011.During the same period,no passive income was recognized.How much is suspended under the at-risk rules and the passive loss rules at the beginning of 2012? At-risk Passive loss

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Quizplus · Accepted Answer

Joy's at-risk amount decreases by the losses each year until it reaches zero. In 2009, $100,000 is deducted from $250,000, leaving $150,000. In 2010, $80,000 is deducted, leaving $70,000. In 2011, $70,000 is deducted, leaving $0 at-risk. The remaining $20,000 loss in 2011 is suspended under the at-risk rules. The total passive loss is $100,000 + $80,000 + $90,000 = $270,000, but $20,000 is suspended under at-risk rules, leaving $250,000 suspended under passive loss rules.

Several Years Ago,Joy Acquired a Passive Activity