Linda owns three passive activities that had the following results for the current year:
$\begin{array}{lc}
\text { Passive Activity A } & \$(4,500) \
\text { Passive Activity B } & 20,000 \
\text { Passive Activity C } & (25,500)
\end{array}$
If none of the passive activities are rental real estate activities,what is the amount of suspended loss attributable to Activity A?

Question

Quizplus · Accepted Answer

The total passive income from Activity B is $20,000, which can offset the total passive losses of $30,000 ($4,500 + $25,500). The net loss is $10,000, which is suspended. The suspended loss is allocated proportionally to the losses, so Activity A's suspended loss is $4,500 / $30,000 * $10,000 = $1,500.

Linda Owns Three Passive Activities That Had the Following Results