Homework Answers
Solution:
Question:1 How much of $60,00 net passive loss can you deduct this year.
Answer: c) $60,000
1)We can deduct this year up to $60,000.
2) Only Passive gains should be used to set off passive losses, During this year, passive gains are $ 40,000 and passive losses are $ 100,000. So, net passive losses are $ 60,000 ($100,000 - $ 40,000)
Question:2
How much of activity A`s loss is suspended ?
Answer: $ 30,000
Explanation:
1) Suspended loss is calculated proportionately to all the passive losses activities
2) Calculation of suspended loss of activities:
| Activity | Suspended Losses | Calculation |
| A | $ 30,000.00 | 60000/100000*50000 |
| B | $ 18,000.00 | 60000/100000*30000 |
| C | $ 12,000.00 | 60000/100000*20000 |
| $ 60,000.00 |
Add Answer to:
also how much of activity As loss is suspended?
year Activity Gain/(Loss) (550,000) ($30,000) ($20,000) $40,000...
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