Judy acquired passive Activity A in January 2012 and Activity B in July 2013. Until 2017, Activity A was profitable. Activity A produced a loss of $50,000 in 2017 and a loss of $75,000 in 2018. She has $45,000 passive income from Activity B in 2017, and $35,000 in 2018. After offsetting passive income, how much of the net losses may she deduct?
Judy acquired passive Activity A in January 2012 and Activity B in July 2013. Until 2017, Activity A was profitable. Activity A produced a loss of $50,000 in 2017 and a loss of $75,000 in 2018. She has $45,000 passive income from Activity B in 2017, and $35,000 in 2018. After offsetting passive income, how much of the net losses may she deduct?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 12.
Transcribed Image Text:Judy acquired passive Activity A in January 2012 and Activity B in July 2013. Until 2017, Activity A was profitable. Activity A produced a loss of $50,000 in 2017 and a loss of
$75,000 in 2018. She has $45,000 passive income from Activity B in 2017, and $35,000 in 2018. After offsetting passive income, how much of the net losses may she deduct?
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