In 2019, Glenn Recorded a $108,000 Loss on a Passive

question 3

Multiple Choice

In 2019, Glenn recorded a $108,000 loss on a passive activity.None of the loss is attributable to AMT adjustments or preferences.She has no other passive activities.Which of the following statements is correct?

• A)In 2019, Glenn can deduct $108,000 for regular income tax purposes and for AMT purposes.
• B)Glenn reports a $108,000 tax preference in 2019 as a result of the passive activity.
• C)For regular income tax purposes, none of the passive activity loss is allowed in 2019.
• D)In 2019, Glenn reports a positive adjustment of $25,000 as a result of the passive activity loss.