Art's At-Risk Amount in a Passive Activity Was $60,000 at the Beginning

question 9

Multiple Choice

Art's at-risk amount in a passive activity was $60,000 at the beginning of 2017. His loss from the activity in 2017 is $80,000, and he had no passive activity income during the year. Art had $20,000 of passive activity income from the activity in 2018. Under the passive activity loss rules, Art's suspended loss at the end of 2018 is:

• A) $15,000.
• B) $20,000.
• C) $45,000.
• D) $60,000.
• E) None of the above.

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Definitions:

Mindfulness

A mental state achieved by focusing one's awareness on the present moment, while calmly acknowledging and accepting one's feelings, thoughts, and bodily sensations, used as a therapeutic technique.

Acceptance

The act of receiving or taking something offered, or the recognition of a situation or condition without attempting to change it.

Metamorphosis

A biological process by which an animal physically develops after birth or hatching, involving a conspicuous and relatively abrupt change in the animal's body structure.

Albert Ellis

An influential figure in the field of psychotherapy, particularly noted for his contributions to cognitive therapies and his challenge to traditional psychoanalytic approaches.