Jeff Owned One Passive Activity

question 108

Multiple Choice

Jeff owned one passive activity.Jeff sold the activity and realized a $2,000 gain on the sale.Prior to the sale,he realized a current year loss from the activity of $6,000.In addition,he has suspended losses from prior years of $7,000.What is the net impact on Jeff's AGI this year due to the passive activity?

• A)increase of $2,000
• B)no net change
• C)decrease of $4,000
• D)decrease of $11,000

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Definitions:

Automatic Mind

Refers to the unconscious processing in the brain that guides most of our behaviors and decisions without deliberate thought.

Positive Emotions

Emotions that are felt when experiencing positive or pleasant situations, such as happiness, joy, or love.

Successful Leaders

Individuals who effectively guide and direct a group towards achieving its goals.

Decisiveness

The ability to make decisions quickly and effectively.