Passing Criteria: $\frac{4}{5}$

Lesson $23-$ Passive Activity Losses $-$ Trade or Business Activities Tested Objective: $23-3$ Compute the amount of loss allowed from passive trade or business activities for an individual by reason of IRC $469$

Possine incose

$12.$ Income from which of the following sources would not offset passive losses?

a$.$ Interest Income not $p.$

b$.$ Limited partnership business income $($taxpayer does not meet material participation test $1,5,$ or $6$ in Reg. $1\mathrm{.}469-5$T$($a$))$

c$.$ Income from farm taxpayer owns but does not operate.

d$.$ Business income from S Corp $($taxpayer does not materially participate$)$

$13.$ Candice's $2019K-1$ shows a $($$$10,000)$ loss from an S$-$corporation that operates a retail store. Candice has dividend income of $$1,000$ in $2019$ in Candice's sister manages the S$-$corporation business. Candice does not participate in the business.

Compute Candice's allowed loss from the S$-$corporation in $2019.$

a$.$ $$0$

b$.($$$1,000)$

c$.($$$9,000)$

d$.($$$10,000)$

$4.$ Losses on fully taxable and complete dispositions of passive activities to an unrelated party are deductible as a loss which is not from a passive activity.

a$.$ True

b$.$ False

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