Brent Fullback owned four passive activity interests in 2019:

On March 2, 2019, Fullback sold his entire interest in A-1 for $15,000. His basis in the activity on January 1, 2019, was $11,000.
Compute the following:

a. Gain or loss realized from the sale of A-1

b. Passive loss deduction (against nonpassive income) and type (i.e., ordinary income (loss) or capital income (loss))

c. Suspended losses and how they are allocated

Transcribed Image Text:

Activity A-1 8-2 C-3 D-4 2019 Allocated Pre-2019 Date Gain/ (Loss) Acquired 11/22/93 14,000 01/25/96 (22,000) 07/03/98 (5,000) 08/01/00 (3.000) Suspended Loss (27,000) (25,000) (8,000) (1,000)