In 2013,Glenn Had a $108,000 Loss on a Passive Activity

question 100

Multiple Choice

In 2013,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 2013,Glenn can deduct $108,000 for regular income tax purposes and for AMT purposes.
• B)Glenn will have a $108,000 tax preference in 2013 as a result of the passive activity.
• C)For regular income tax purposes,none of the loss is allowed in 2013.
• D)In 2013,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:

Bargaining Structure

The set-up and organization of collective bargaining, including the levels at which negotiations occur (e.g., national, industry-wide, or company level) and the participants involved.

Tradeoff

A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect.

Responsiveness

The quality of reacting quickly and positively to changes, inquiries, or requests.

Collective Bargaining Agreements

Legal contracts between employers and workers' unions outlining wages, hours, benefits, and working conditions.