Question

Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as follows:
Activity Income (Loss)
A $30,000
B (30,000)
C (15,000)
D (5,000)

In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. Answer the following questions to determine how the sale of Activity D affects Sarah's taxable income in the current year.

a. The amount of suspended losses carried forward to the year of the sale is: ______________.
b. What amount of the suspended losses is allocated to Activity D?

Answer 1

Answer:

Ist B

Explanation:

Ist b