In 2018, Glenn Recorded a $108,000 Loss on a Passive

question 23

Multiple Choice

In 2018, 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 2018, Glenn can deduct $108,000 for regular income tax purposes and for AMT purposes.
• B) Glenn reports a $108,000 tax preference in 2018 as a result of the passive activity.
• C) For regular income tax purposes, none of the passive activity loss is allowed in 2018.
• D) In 2018, Glenn reports a positive adjustment of $25,000 as a result of the passive activity loss.

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Definitions:

Patellar Reflex

A reflex action that causes the lower leg to kick forward when the patellar tendon just below the kneecap is tapped; a measure of the function of the nervous system.

Spinal Segments

Sections of the spinal cord that correspond to the vertebrae, from which spinal nerves emerge to innervate specific areas of the body.

Myelin

A fatty substance that surrounds and insulates the axons of some neurons, allowing for faster transmission of electrical signals along the nerve cells.

Endoneurium

The delicate connective tissue surrounding each nerve fiber within a peripheral nerve, providing mechanical and physiological support to individual axons.