Ann is a wealthy investor who earns $500,000 of interest and dividends during the current year....

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Ann is a wealthy investor who earns $500,000 of interest and dividends during the current year. This year, she acquired a passive activity that produces a loss of $100,000 for the year. Deductible loss? Jan has active income of $200,000 and owns a passive activity that produces a $90,000 loss for the year. Upon the advice of her CPA, Jan acquires a passive activity that produces income of $100,000 for the year. Deductible passive loss? L sells her partnership interest, a passive activity, with an adj. basis of $305,000 for $330,000. Her suspended losses from this passive activity total $28,000. Recognized gain or loss from sale of the passive activity? Suspended losses are recognized upon a taxable disposition of the property, because at that point the actual economic gain or loss on the investment finally can be determined. Ann is a wealthy investor who earns $500,000 of interest and dividends during the current year. This year, she acquired a passive activity that produces a loss of $100,000 for the year. Deductible loss? Jan has active income of $200,000 and owns a passive activity that produces a $90,000 loss for the year. Upon the advice of her CPA, Jan acquires a passive activity that produces income of $100,000 for the year. Deductible passive loss? L sells her partnership interest, a passive activity, with an adj. basis of $305,000 for $330,000. Her suspended losses from this passive activity total $28,000. Recognized gain or loss from sale of the passive activity? Suspended losses are recognized upon a taxable disposition of the property, because at that point the actual economic gain or loss on the investment finally can be determined.

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