Jeff Owned One Passive Activity

question 1282

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

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Definitions:

T-Score

A standardized score that indicates how many standard deviations an element is from the mean.

Confidence Estimate

A range of values used to estimate a parameter, calculated in such a way that it is likely, to a specified level of confidence, to contain the true value of the parameter.

Confidence Interval

A set of values, calculated from sample statistics, predicted to hold the value of an unobserved population parameter.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.