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:

Reinforcement Value

The subjective importance or appeal an outcome has for an individual, which can influence the likelihood of the person performing the behavior leading to that outcome.

Verbal Abusiveness

The use of words to cause harm to a person, including insults, criticisms, or threats, often resulting in psychological pain and distress.

Locus of Control

A psychological concept that refers to how strongly people believe they have control over the situations and experiences that affect their lives.

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.