Matt Has Three Passive Activities and Has At-Risk Amounts in Excess

question 75

Short Answer

Matt has three passive activities and has at-risk amounts in excess of $100,000 for each. During the year, the activities produced the following income (losses). $$\begin{array} { l c } \text { Activity A } & ( \$ 60,000 ) \\\text { Activity B } & ( 40,000 ) \\\text { Activity C } & \underline { 75,000 } \\\text { Net passive activity loss } & \underline { ( \$ 25,000 ) }\end{array}$$ Matt's suspended losses are as follows:
A) $25,000 is allocated to C; $0 to A and B.
B) $12,500 is allocated to A; $12,500 to B.
C) $15,000 is allocated to A; $10,000 to B.
D) $8,333 is allocated to A, B and C.
E) None of these.

• A) $25,000 is allocated to C; $0 to A and B.
• B) $12,500 is allocated to A; $12,500 to B.
• C) $15,000 is allocated to A; $10,000 to B.
• D) $8,333 is allocated to A, B and C.
• E) None of these.

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