Losses from passive activities may be used to offset which of the following? pas

Question

Losses from passive activities may be used to offset which of the following?

passive income from a different passive activity

salaries

investment income from a non-passive activity

capital gains

Losses from passive activities are deductible in a given year to the extent the passive activity income exceeds such losses and any excess losses not deductible in the current year:

are also not deductible in any future year

may be carried back three years

may be carried forward five years

may be carried forward indefinitely

Which of the following is not considered part of the amount “at risk” for purposes of the at-risk rules?

any money contributed with respect to the activity

the adjusted basis of any property contributed with respect to the activity

any amounts borrowed with respect to the activity

only those amounts borrowed with respect to the activity for which the investor is personally liable

a.

passive income from a different passive activity

b.

salaries

c.

investment income from a non-passive activity

d.

capital gains

Losses from passive activities are deductible in a given year to the extent the passive activity income exceeds such losses and any excess losses not deductible in the current year:

a.

are also not deductible in any future year

b.

may be carried back three years

c.

may be carried forward five years

d.

may be carried forward indefinitely

Which of the following is not considered part of the amount “at risk” for purposes of the at-risk rules?

a.

any money contributed with respect to the activity

b.

the adjusted basis of any property contributed with respect to the activity

c.

any amounts borrowed with respect to the activity

d.

only those amounts borrowed with respect to the activity for which the investor is personally liable

Explanation / Answer

1) a) passive income from a different passive activity

2) d) may be carried forward indefinitely

3) d) only those amounts borrowed with respect to the activity for which the investor is personally liable

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