Faye Dies Owning an Interest in a Passive Activity Property

question 25

Multiple Choice

Faye dies owning an interest in a passive activity property (adjusted basis of $150,000, suspended losses of $52,000, and a fair market value of $180,000) .What, if any, can be deducted on her final income tax return?

• A)$52,000.
• B)$30,000.
• C)$22,000.
• D)$0.
• E)None of these.

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Definitions:

Damage

Damage refers to the loss or injury suffered as a result of an act or omission, which may be subject to compensation in legal terms.

Agreement to Sell

A contractual arrangement where a seller agrees to transfer goods or services to a buyer at a future date, under specified conditions.

Contract to Sell

An agreement where one party promises to transfer ownership of goods or property to another upon the satisfaction of specified conditions.

Actual Title

The legal possession of property, evidenced by a deed or another legal document, as opposed to mere possession or use.