Homework Answers
1. Arnold’s $100,000 loss is nondeductible in 2018 and 2019 as per the passive activity loss provisions.
2. Amount of Suspended loss = Positive Income - Loss
Amount of Suspended loss = 30000 - 50000
Amount of Suspended loss = $20000
3. Carl's AGI = $245000 ($200000 + 45000)
He is not allowed to offset the net passive loss against active or portfolio income.
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