Problem $6-23($LO$.6)$

Leon sells his interest in a passive activity for $$100,000.$ Determine the tax effect of the sale based on each of the following independent

facts:

If an amount is zero, enter $"0".$

a$.$ Adjusted basis in this investment is $$35,000.$ Losses from prior years that were not deductible due to the passive activity loss

restrictions total $$40,000.$

The

$$ is $

$.$

The suspended losses at the end of the year are $

When a taxpayer disposes of his or her entire interest in a passive activity, the actual economic gain or loss from the investment, including any

suspended losses, can finally be determined.

b$.$ Adjusted basis in this investment is $$75,000.$ Losses from prior years that were not deductible due to the passive activity loss

restrictions total $$40,000.$

The deductible loss $$ is s

x$.$

The suspended losses at the end of the year are $

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c$.$ Adjusted basis in this investment is $$75,000.$ Losses from prior years that were not deductible due to the passive activity loss

restrictions total $$40,000.$ In addition, suspended credits total $$10,000.$

The

$$ is $s$

The suspended losses at the end of the year are $

The suspended credits at the end of the year are