Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is not deductible after considering the excess business loss rules?
A) $270,000.
B) $250,000.
C) $20,000.
D) $0.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The nondeductible excess business loss is $20,000 (the taxpayer's aggregate business deductions ($270,000) over the sum of his business gross income $0 and $250,000).

Max, a Single Taxpayer, Has a $270,000 Loss from His