Which of the Following Can Be Used to Offset a Passive

question 37

Multiple Choice

Which of the following can be used to offset a passive loss?

• A)Active income such as wages
• B)Passive income such as income from a limited partnership
• C)Dividend income from stock held as an investment
• D)Pension income
• E)All but a

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Definitions:

Profit Before Income Tax

The earnings of a business before taking into account the deduction of income tax expenses, also known as pre-tax profit.

Percentage Increase

The ratio, often expressed as a percentage, by which a quantity grows over a specific period.

After-Tax Profit

The amount of net income left over after all taxes have been deducted from total revenue.

Sold Units

The total quantity of units of a product that have been sold during a specific period.