Peach Corporation Had $210,000 of Net Active Income, $45,000 of Portfolio

question 40

True/False

Peach Corporation had $210,000 of net active income, $45,000 of portfolio income, and a $230,000 passive loss during the current year. If Peach is a closely held C corporation that is not a PSC, it can deduct $210,000 of the passive loss in the year.

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Definitions:

Necessary Condition

A prerequisite that must exist or be met for a particular event or thing to occur or be considered true.

Screws

Fasteners with a threaded shaft designed to hold objects together or to position them.

Threaded

Describes the process or the characteristic of incorporating threads for parallel execution in programming or mechanical connections.

Metallic

Pertaining to metals, their properties, characteristics, or appearance.