Caroyl Made a Gift to Tim of a Passive Activity

question 60

Multiple Choice

Caroyl made a gift to Tim of a passive activity (adjusted basis of $50,000, suspended losses of $20,000, and a fair market value of $80,000) . No gift tax resulted from the transfer.

• A) Tim's adjusted basis is $80,000, and Tim can deduct the $20,000 of suspended losses in the future.
• B) Tim's adjusted basis is $80,000.
• C) Tim's adjusted basis is $50,000, and the suspended losses are lost.
• D) Tim's adjusted basis is $50,000, and Tim can deduct the $20,000 of suspended losses in the future.
• E) None of the above.

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Definitions:

Freud's Theory

Refers to Sigmund Freud's psychoanalytic theory, which emphasizes unconscious processes and childhood experiences in shaping personality and behavior.

Evolutionary Psychology

A theoretical approach in psychology that explores how evolutionary principles explain psychological traits and behaviors.

Theory Differ

Suggests the notion that various theories may diverge in their premises, methodologies, or conclusions, reflecting diversity in understanding or interpretation.

Behaviorism

A school of psychology that focuses on observable behaviors and the ways they're learned, emphasizing the role of environmental factors over inner experiences.