Margery owns a passive activity with a basis of $15,000. The activity has a $9,000 suspended loss.

Question:

Margery owns a passive activity with a basis of $15,000. The activity has a $9,000 suspended loss. Margery sells the passive activity for $22,000.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.