Lewis Died During the Current Year

question 94

Multiple Choice

Lewis died during the current year.Lewis owned passive activity property with a FMV of $61,000 and a basis of $48,000.Suspended losses of $15,000 were attributable to the property.How much of the suspended loss is deductible on Lewis's final income tax return?

• A)$0
• B)$2,000
• C)$13,000
• D)$15,000

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Definitions:

Hammers

Tools consisting of a weighted "head" fixed to a long handle, used for driving nails into, or pulling them out of, a surface.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first sold during an accounting period; LIFO stands for Last-In, First-Out.

Ending Inventory

The value of goods available for sale at the end of an accounting period, after accounting for sales and additions during the period.

Toasters

Kitchen appliances designed for toasting bread.