Spencer Has an Ownership Interest in Three Passive Activities

question 49

Multiple Choice

Spencer has an ownership interest in three passive activities.In the current tax year,the activities had the following income and losses: How much in passive losses can Spencer deduct?

• A) $0.
• B) $12,000.
• C) $16,000.
• D) $20,000.

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Definitions:

Free-association Technique

A therapeutic method used in psychoanalysis where patients are encouraged to verbalize thoughts as freely as they occur.

Benzodiazepines

A class of psychoactive drugs used primarily for treating anxiety, insomnia, and other disorders by enhancing the effect of the neurotransmitter GABA.

Monoamine Oxidase

An enzyme that plays a role in breaking down neurotransmitters such as serotonin and dopamine, influencing mood and emotional states.

Selective Serotonin Reuptake Inhibitors

A class of drugs typically used as antidepressants in the treatment of major depressive disorder, anxiety disorders, and some personality disorders by increasing serotonin levels in the brain.