Several Years Ago, Joy Acquired a Passive Activity

question 96

Short Answer

Several years ago, Joy acquired a passive activity.Until 2016, the activity was profitable.Joy's at-risk amount at the beginning of 2016 was $250,000.The activity produced losses of $100,000 in 2016, $80,000 in 2017, and $90,000 in 2018.During the same period, no passive activity income was recognized.How much is suspended under the at-risk rules and the passive activity loss rules at the beginning of 2019?

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Definitions:

Current Yield

is the annual income (interest or dividends) divided by the current price of the security, used to assess the return of an investment.

Market Price

The prevailing market price for an asset or service available for trade or acquisition.

Semiannual Coupon Rate

The interest rate on a bond or fixed-income security that is paid out to investors twice a year.

Current Yield

This term denotes the annual income (interest or dividends) divided by the current price of the security, often used in reference to bonds.