If a Taxpayer Sells a Passive Activity with Suspended Passive

question 68

Multiple Choice

If a taxpayer sells a passive activity with suspended passive activity losses from prior years, what type of income can generally be offset by the suspended passive losses in the year of sale?

• A)Passive activity income
• B)Portfolio income
• C)Active business income
• D)Any of these types of income can be offset
• E)None of the choices are correct. The suspended losses disappear when the passive activity is sold.

---

Definitions:

Electronic Media Claims

Medical billing claims submitted to insurance providers through electronic systems for processing and payment.

Data Elements

Individual units of data that represent a specific piece of information, used in the structure of databases and data systems.

Workers' Compensation

This insurance offers medical benefits and compensation for lost wages to employees hurt during their employment.

Verification

The process of establishing the truth, accuracy, or validity of something.