Art's At-Risk Amount in a Passive Activity Was $60,000 at the Beginning

question 19

Multiple Choice

Art's at-risk amount in a passive activity was $60,000 at the beginning of 2016. His loss from the activity in 2016 is $80,000, and he had no passive activity income during the year. Art had $20,000 of passive activity income from the activity in 2017. Under the passive activity loss rules, Art's suspended loss at the end of 2017 is:

• A)$15,000.
• B)$20,000.
• C)$45,000.
• D)$60,000.
• E)None of the above.

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Definitions:

Multinational Hotel

A hotel business that operates in multiple countries, catering to international standards and diverse clienteles.

Contractual Risk

The potential of loss arising from the obligations outlined in a contract not being met by one or more parties.

Content Writing

The creation of written material for websites, blogs, and social media platforms, aimed at engaging audiences and often optimized for search engines.

Publishing Company

An organization that specializes in the production and distribution of books, magazines, online content, or other forms of publications.