Caroyl Made a Gift to Tim of a Passive Activity

question 60

Multiple Choice

Caroyl made a gift to Tim of a passive activity (adjusted basis of $50,000, suspended losses of $20,000, and a fair market value of $80,000) . No gift tax resulted from the transfer.

• A) Tim's adjusted basis is $80,000, and Tim can deduct the $20,000 of suspended losses in the future.
• B) Tim's adjusted basis is $80,000.
• C) Tim's adjusted basis is $50,000, and the suspended losses are lost.
• D) Tim's adjusted basis is $50,000, and Tim can deduct the $20,000 of suspended losses in the future.
• E) None of the above.

---

Definitions:

Lead Cards

Physical or digital records used by sales professionals to track potential customers or clients, including contact information and relevant notes.

Sales Pitch

A brief presentation that outlines the main features and benefits of a product or service to persuade potential customers to buy.

Center of Influence

An individual or organization that has a significant impact on the opinions or actions of a specific group of people.

Prospect List

A compiled list of potential customers or clients who may be interested in a company's products or services, often used for sales and marketing efforts.