Sage, Inc, a Closely Held Corporation That Is Not a PSC

question 2

Multiple Choice

Sage, Inc., a closely held corporation that is not a PSC, has a $110,000 passive loss, $90,000 of active income, and $25,000 of portfolio income during the year. How much of the passive loss can Sage deduct in the current year?

• A) $0.
• B) $25,000.
• C) $90,000.
• D) $110,000.
• E) None of the above.

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Definitions:

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