Art's At­risk Amount in a Passive Activity Was $60,000 at the Beginning

question 59

Multiple Choice

Art's at­risk amount in a passive activity was $60,000 at the beginning of 2013. His loss from the activity in 2013 is $80,000, and he had no passive activity income during the year. Art had $20,000 of passive income from the activity in 2014. Under the passive loss rules, Art's suspended loss at the end of 2014 is:

• A) $15,000.
• B) $20,000.
• C) $45,000.
• D) $60,000.
• E) None of the above.

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Definitions:

Proteins

Large molecules made up of amino acids that perform a variety of functions in the body, such as catalyzing metabolic reactions and supporting cell structure.

Alleles

Variants of a gene that arise by mutation and are found at the same place on a chromosome.

Heterozygous

Having two different alleles for the same trait.

Genetic Mutations

Permanent alterations in the DNA sequence that make up a gene, resulting in the gene functioning differently than normal.