Lucy Owns and Actively Participates in the Operations of an Apartment

question 67

True/False

Lucy owns and actively participates in the operations of an apartment complex that produces a $50,000 loss during the year. Her modified AGI is $125,000 from an active business. Disregarding any at-risk amount limitation, she may deduct $25,000 of the loss, and the remaining $25,000 is a suspended passive activity loss.

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Definitions:

Motivated to Join

Refers to the intrinsic or extrinsic factors that drive an individual to become part of a group, organization, or movement.

Productivity, Quality, Service

Three critical performance indicators in business that encompass efficiency of operations, standards of products or services, and customer satisfaction.

Flexible

The ability to adapt to changes and respond effectively to new challenges, situations, and environments.

Innovative

Characterized by the introduction of new ideas, methods, or products; being creative and forward-thinking.