Match the treatment for the following types of transactions.
a. The losses are allowed in the years in which gain is recognized.
b. Suspended losses are allowed to offset the income from the activity, other passive activities, or active income.
c. Suspended losses are allowed to the taxpayer to the extent they exceed the amount, if any, of the step-up in basis allowed.
d. Any suspended losses may be used in the current year.
e. The suspended losses are added to the basis of the property.
f. No correct choice is given.
-Treatment of a sale of a passive activity where all of the realized gain or loss is recognized currently.

Question

Match the treatment for the following types of transactions.
a. The losses are allowed in the years in which gain is recognized.
b. Suspended losses are allowed to offset the income from the activity, other passive activities, or active income. 
c. Suspended losses are allowed to the taxpayer to the extent they exceed the amount, if any, of the step-up in basis allowed.
d. Any suspended losses may be used in the current year.
e. The suspended losses are added to the basis of the property.
f. No correct choice is given.
-Treatment of a sale of a passive activity where all of the realized gain or loss is recognized currently.

Quizplus · Accepted Answer

The Answer of Match the treatment for the following types of transactions.
a. The losses are allowed in the years in which gain is recognized.
b. Suspended losses are allowed to offset the income from the activity, other passive activities, or active income. 
c. Suspended losses are allowed to the taxpayer to the extent they exceed the amount, if any, of the step-up in basis allowed.
d. Any suspended losses may be used in the current year.
e. The suspended losses are added to the basis of the property.
f. No correct choice is given.
-Treatment of a sale of a passive activity where all of the realized gain or loss is recognized currently.

Match the Treatment for the Following Types of Transactions