In 2014, Glenn Had a $108,000 Loss on a Passive

question 62

Multiple Choice

In 2014, Glenn had a $108,000 loss on a passive activity. None of the loss is attributable to AMT adjustments or preferences. She has no other passive activities. Which of the following statements is correct?

• A) In 2014, Glenn can deduct $108,000 for regular income tax purposes and for AMT purposes.
• B) Glenn will have a $108,000 tax preference in 2014 as a result of the passive activity.
• C) For regular income tax purposes, none of the loss is allowed in 2014.
• D) In 2014, Glenn will have a positive adjustment of $25,000 as a result of the passive loss.
• E) None of the above.

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Definitions:

Demand

The quantity of a product or service consumers are willing and able to purchase at various price levels.

Convenience Store Products

Items sold in convenience stores, often including snacks, beverages, tobacco products, and household essentials.

Gas Sales

Transactions involving the purchase and sale of gas, either in its natural form or after processing, typically for the purpose of energy production or heating.

Complements

Goods or services that are used together, where the demand for one item increases the demand for another.