Hugh Has Four Passive Activities Which Generate the Following Income

question 112

Essay

Hugh has four passive activities which generate the following income and losses in the current year. $$\begin{array} { c r } \text { Activity } & \text { Gain (Loss) } \\\hline \text { A } & ( \$ 60,000 ) \\\text { B } & ( 20,000 ) \\\text { C } & ( 10,000 ) \\\text { D } & 10,000 \\\text { Total } & \underline { ( \$ 80,000 ) }\end{array}$$ How much of the $80,000 net passive activity loss can Hugh deduct this year? Calculate the suspended losses (by activity).

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