Kacie is a 30 percent owner in Crisp Potato, LLC, a French fry manufacturer. She is also
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Kacie is a 30 percent owner in Crisp Potato, LLC, a French fry manufacturer. She is also a 20 percent owner in WhyBurger, LLC a successful restaurant. She does not materially participate in either business. Her at-risk and loss/income for the current year is as follows:
- Crisp Potato LLC - At-risk = $140,000; Loss of $260,000
- WhyBurger - At-risk = $61,000; Income of $110,000
She also has wage income of $130,000 and capital gain income of $22,000. Which of the following statements is true?
- A. The loss suspended because of the at-risk rules is $30,000 and the loss suspended because of the passive activity loss rules is $120,000.
- B. The loss suspended because of the at-risk rules is $140,000 and the loss suspended because of the passive activity loss rules is $0.
- C. The loss suspended because of the at-risk rules is $120,000 and the loss suspended because of the passive activity loss rules is $30,000.
- D. The loss suspended because of the at-risk rules is $61,000 and the loss suspended because of the passive activity loss rules is $110,000.
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