Dorothy acquired a 100% interest in two passive activities: Activity A in January 2015 and Activity B in 2016. Through 2018, Activity A was profitable, but it produced losses of $200,000 in 2019 and $100,000 in 2020. Dorothy has passive activity income from Activity B of $20,000 in 2019 and $40,000 in 2020. After offsetting passive activity income, how much of the net losses may she deduct? If an amount is zero, enter "0". In 2019, Dorothy may deduct $ of the net passive activity losses and has $ of passive activity losses suspended. In 2020, Dorothy may deduct $ of the net passive activity losses and has total suspended losses carried forward to 2021 of $.
Dorothy acquired a 100% interest in two passive activities: Activity A in January 2015 and Activity B in 2016. Through 2018, Activity A was profitable, but it produced losses of $200,000 in 2019 and $100,000 in 2020. Dorothy has passive activity income from Activity B of $20,000 in 2019 and $40,000 in 2020. After offsetting passive activity income, how much of the net losses may she deduct? If an amount is zero, enter "0". In 2019, Dorothy may deduct $ of the net passive activity losses and has $ of passive activity losses suspended. In 2020, Dorothy may deduct $ of the net passive activity losses and has total suspended losses carried forward to 2021 of $.
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 36P
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Dorothy acquired a 100% interest in two passive activities: Activity A in January 2015 and Activity B in 2016. Through 2018, Activity A was profitable, but it produced losses of $200,000 in 2019 and $100,000 in 2020. Dorothy has passive activity income from Activity B of $20,000 in 2019 and $40,000 in 2020.
After offsetting passive activity income, how much of the net losses may she deduct?
If an amount is zero, enter "0".
In 2019, Dorothy may deduct $ of the net passive activity losses and has $ of passive activity losses suspended. In 2020, Dorothy may deduct $ of the net passive activity losses and has total suspended losses carried forward to 2021 of $.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT