Problem 11-37 (LO. 1, 3) Dorothy acquired a 100% interest in two passive activit

Question

Problem 11-37 (LO. 1, 3) Dorothy acquired a 100% interest in two passive activities: Activity A in January 2012 and Activity B in 2013. Through 2015, Activity A was profitable, but it produced losses of $200,000 in 2016 and $100,000 in 2017. Dorothy has passive activity income from Activity B of $20,000 in 2016 and $40,000 in 2017 After offsetting passive activity income, how much of the net losses may she deduct? If an amount is zero, enter "O" 180,000 Vof passive activity losses In 2016, Dorothy may deduct suspended. In 2017, Dorothy may deduct forward to 2018 of 240,000 X of the net passive activity losses and has total suspended losses carried

Explanation / Answer

In 2016, Dorothy may deduct $0 of the net passive activity losses and has $ 180000 of passive activity losses suspended. In 2017, Dorothy may deduct $ 60000 (100000-40000) of the net passive activity losses and has total suspended loses carried forward to 2018 of $240000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---