Norris Owns a Passive Activity That Has a Suspended Loss

question 70

Multiple Choice

Norris owns a passive activity that has a suspended loss of $12,000. The activity has a fair market value of $42,000 and his adjusted basis in the activity is $27,000.
I.If Norris gifts the property, he is allowed to deduct $3,000 of the suspended loss.
II.If Norris dies, none of the suspended loss is deductible.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Discriminative Stimulus

A stimulus in the presence of which a particular response will be reinforced, and in the absence of which that response is less likely to occur.

Consequence

The result or effect of an action or condition, often considered in terms of its impact or significance.

Evolutionary Psychologists

Psychologists who study the evolutionary origins of human behavior and mental processes.

Acquired Fears

Fears that develop as a result of specific experiences or learning, rather than being innate.