In 2014,Glenn Had a $108,000 Loss on a Passive Activity

question 17

Multiple Choice

In 2014,Glenn had a $108,000 loss on a passive activity.None of the loss is attributable to AMT adjustments or preferences.She has no other passive activities.Which of the following statements is correct?

• A)In 2014,Glenn can deduct $108,000 for regular income tax purposes and for AMT purposes.
• B)Glenn will have a $108,000 tax preference in 2014 as a result of the passive activity.
• C)For regular income tax purposes,none of the loss is allowed in 2014.
• D)In 2014,Glenn will have a positive adjustment of $25,000 as a result of the passive loss.
• E)None of these.

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Definitions:

Side Effects

Unintended and often adverse reactions to a medication or medical treatment.

IV Infusion

The delivery of liquid substances directly into a vein through an intravenous line.

Charting

The process of recording medical and health services information in a patient's file.

Medication Administration Record

A comprehensive report listing the medicines administered to a patient along with the dosages and times of administration.