Identify from the Following List the Type of Disposition of a Passive

question 60

Multiple Choice

Identify from the following list the type of disposition of a passive activity where the taxpayer keeps the suspended losses of the disposed activity and utilizes them on a subsequent taxable disposition.

• A)Disposition of a passive activity by gift.
• B)Disposition of a passive activity at death.
• C)Installment sale of a passive activity.
• D)All of these apply here.
• E)None of these applies here.

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Definitions:

Noncorporate Business Organization

Any form of business entity that is not incorporated, such as partnerships, sole proprietorships, and limited liability companies, where the legal and tax characteristics may differ from those of corporations.

Separate Taxable Entity

An entity that is recognized as separate from its owners for tax purposes, such as a corporation, and therefore must file its own tax returns.

Ownership Interest

A portion or share in the ownership of assets, such as real estate or a company, affording the holder certain rights like income or control.

General Partners

Individuals or entities that participate in the management of a partnership and have unlimited personal liability for the debts and obligations of the partnership.