Kate Dies Owning a Passive Activity with an Adjusted Basis

question 99

Multiple Choice

Kate dies owning a passive activity with an adjusted basis of $100,000. Its fair market value at that date is $130,000. Suspended losses relating to the property were $45,000.

• A) The heir's adjusted basis is $130,000, and Kate's final deduction is $15,000.
• B) The heir's adjusted basis is $130,000, and Kate's final deduction is $45,000.
• C) The heir's adjusted basis is $100,000, and Kate's final deduction is $45,000.
• D) The heir's adjusted basis is $175,000, and Kate has no final deduction.
• E) None of the above.

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Definitions:

Top Management

The highest level of executive and administrative officers in an organization, responsible for strategy formulation and overall direction.

Targeted Recruitment

is a recruitment strategy where efforts are focused on attracting candidates from specific groups, skills sets, or backgrounds.

High Leadership Positions

Roles within an organization that hold significant authority and responsibility, often involving strategic decision-making.

Mental Toughness

The capacity to persist, remain optimistic, and proceed towards goals in the face of difficulties and challenges.