Josh Has Investments in Two Passive Activities

question 32

Multiple Choice

Josh has investments in two passive activities. Activity A (acquired three years ago) produces income of $30,000 this year, while Activity B (acquired two years ago) produces a loss of $50,000. What is the amount of Josh's suspended loss for the year?

• A) $0
• B) $18,000
• C) $20,000
• D) $50,000
• E) None of the above

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Definitions:

Two-Parent Homes

Households in which children are raised by both biological or adoptive parents, often associated with positive developmental outcomes for children.

Single-Parent Homes

Households in which one parent is responsible for raising one or more children.

Income

The money received, especially on a regular basis, for work or through investments.

Parent-Child Interactions

The dynamic relationship between a parent and child characterized by communication, caregiving, and nurturing behaviors.