In the current year,Louise invests $50,000 for a 10% interest in a passive activity.Her share of the loss this year is $10,000.If this is her only passive activity,the $10,000 loss is suspended for use in a future year.

Question

Quizplus · Accepted Answer

This is true according to the passive activity rules set forth by the Internal Revenue Service (IRS). The suspended loss can be carried forward to future years to offset any passive income or gain.

In the Current Year,Louise Invests $50,000 for a 10% Interest