Vic's At-Risk Amount in a Passive Activity Is $200,000 at the Beginning

question 44

Multiple Choice

Vic's at-risk amount in a passive activity is $200,000 at the beginning of the current year. His current loss from the activity is $80,000. Vic had no passive activity income during the year. At the end of the current year:

• A) Vic has an at-risk amount in the activity of $120,000 and a suspended passive activity loss of $80,000.
• B) Vic has an at-risk amount in the activity of $200,000 and a suspended passive activity loss of $80,000.
• C) Vic has an at-risk amount in the activity of $120,000 and no suspended passive activity loss.
• D) Vic has an at-risk amount in the activity of $200,000 and no suspended passive activity loss.
• E) None of the above.

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Definitions:

Self-Management

The ability of an individual to manage their own goals, behavior, and resources effectively without the need for external control or supervision.

Personal Strengths

Individual attributes or talents that contribute to one's ability to perform tasks or navigate social interactions effectively.

Market Niche

A focused, targetable portion of a market characterized by unique preferences and needs.

New Venture Creation

The process of recognizing and seizing opportunities for new business development, encompassing the conception, launch, and management of new businesses.