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Dorothy acquired a 100% interest in two passive activities: Activity A in January 2017 and Activity B in 2018. Through

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Dorothy acquired a 100% interest in two passive activities: Activity A in January 2017 and Activity B in 2018. Through 2020, Activity A was profitable, but it produced losses of $200,000 in 2021 and $100,000 in 2022. Dorothy has passive activity income from Activity B of $20,000 in 2021 and $40,000 in 2022. After offsetting passive activity income, how much of the net losses may she deduct?

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In 2021 and 2022 Dorothy may deduct none of the net p…View the full answer


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Question Details
Chapter # 11- Investor Losses
Section: Discussion Questions
Problem: 37
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Question Posted: September 24, 2023 07:51:37
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