If a taxpayer sells a passive activity with suspended passive activity losses from prior years, what type of income can be offset by the suspended passive losses in the year of sale?
A) Passive activity income
B) Portfolio income
C) Active business income
D)Any of these types of income can be offset.
E)None of these

Question

Quizplus · Accepted Answer

In the year of sale, suspended passive activity losses can offset any type of income, including passive, portfolio, and active business income.

If a Taxpayer Sells a Passive Activity with Suspended Passive