Starling Corporation,a closely held personal service corporation,has $150,000 of active income,$60,000 of portfolio income,and a $165,000 passive loss during the year.How much of the passive loss can Starling deduct in the current year?
A)$0.
B)$60,000.
C)$150,000.
D)$165,000.
E)None of the above.

Question

Quizplus · Accepted Answer

Closely held personal service corporations are not allowed to deduct passive losses.

Starling Corporation,a Closely Held Personal Service Corporation,has $150,000 of Active