Jeff Owned One Passive Activity

question 108

Multiple Choice

Jeff owned one passive activity.Jeff sold the activity and realized a $2,000 gain on the sale.Prior to the sale,he realized a current year loss from the activity of $6,000.In addition,he has suspended losses from prior years of $7,000.What is the net impact on Jeff's AGI this year due to the passive activity?

• A)increase of $2,000
• B)no net change
• C)decrease of $4,000
• D)decrease of $11,000

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Definitions:

Temperament Stability

The consistency of an individual's mood and behavioral traits over time, often regarded as an aspect of personality.

Scaffolding

Scaffolding is an educational approach involving providing learners with temporary supports or guidance until they develop the skills and knowledge to perform tasks independently.

Zone of Proximal Development

A concept in developmental psychology which suggests that learning occurs in a region between a child's ability to perform a task under adult guidance and their ability to solve it independently.

Temperament

The combination of mental, physical, and emotional traits of a person; natural predisposition.