At the beginning of the year, Amber has a carryover of unused losses in the amount of $1,250 under the at-risk rules and $2,000 under the passive loss rules. In the current year, Amber has no gain or loss from her passive activity, however she contributes $6,000 to the passive activity. She has no other passive income for the year. At year-end, Amber has the following: Adjusted basis and an at-risk amount in the passive activity: $ Suspended losses under the at-risk rules: $ Suspended passive losses: $
At the beginning of the year, Amber has a carryover of unused losses in the amount of $1,250 under the at-risk rules and $2,000 under the passive loss rules. In the current year, Amber has no gain or loss from her passive activity, however she contributes $6,000 to the passive activity. She has no other passive income for the year. At year-end, Amber has the following: Adjusted basis and an at-risk amount in the passive activity: $ Suspended losses under the at-risk rules: $ Suspended passive losses: $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the beginning of the year, Amber has a carryover of unused losses in the amount of $1,250 under the at-risk rules and $2,000 under the passive loss rules. In the current year, Amber has no gain or loss from her passive activity, however she contributes $6,000 to the passive activity. She has no other passive income for the year.
At year-end, Amber has the following:
- Adjusted basis and an at-risk amount in the passive activity: $
- Suspended losses under the at-risk rules: $
- Suspended passive losses: $
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