Tim owns 3 passive investments. During the current year, he has the following income and loss from each activity:
?
$\begin{array}{lc}
\text { Activity 1 } & \$(7,000) \
\text { Activity } 2 & (3,000) \
\text { Activity 3 } & 4,000
\end{array}$

What is the amount of suspended loss allocated to Activity 2?

Question

Tim owns 3 passive investments. During the current year, he has the following income and loss from each activity:
?
$\begin{array}{lc}
\text { Activity 1 } & \$(7,000) \
\text { Activity } 2 & (3,000) \
\text { Activity 3 } & 4,000
\end{array}$

What is the amount of suspended loss allocated to Activity 2?

Quizplus · Accepted Answer

Suspended loss can only be allocated to the same activity that generated the loss. In this case, Activity 2 had a loss of $1,800, so the suspended loss allocated to Activity 2 is also $1,800. The other activities had either no loss or a gain, so there is no suspended loss to allocate to them.

Tim Owns 3 Passive Investments Activity 1 $(7,000) Activity 2(3,000) Activity 3 4,000\begin{array}{lc}\text { Activity 1 } & \$(7,000) \\\text { Activity } 2 & (3,000) \\\text { Activity 3 } & 4,000\end{array} Activity 1 Activity 2 Activity 3 ​$(7,000)(3,000)4,000​

Tim Owns 3 Passive Investments $\begin{array}{lc}\text { Activity 1 } & \$(7,000) \\\text { Activity } 2 & (3,000) \\\text { Activity 3 } & 4,000\end{array}$