In 2016,Glenn Recorded a $108,000 Loss on a Passive Activity

question 21

Multiple Choice

In 2016,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 2016,Glenn can deduct $108,000 for regular income tax purposes and for AMT purposes.
• B)Glenn reports a $108,000 tax preference in 2016 as a result of the passive activity.
• C)For regular income tax purposes,none of the passive activity loss is allowed in 2016.
• D)In 2016,Glenn reports a positive adjustment of $25,000 as a result of the passive activity loss.
• E)None of the above.

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