Loren Owns Three Passive Activities That Had the Following Results

question 79

Multiple Choice

Loren owns three passive activities that had the following results for the current year:
?
$$\begin{array} { l l } \text { Passive Activity A } & \$ 25,000 \\\text { Passive Activity B } & ( 10,000 ) \\\text { Passive Activity C } & ( 40,000 ) \end{array}$$
If none of the passive activities are rental real estate activities, what is the amount of suspended loss attributable to Activity C?

• A)$- 0 -
• B)$18,750
• C)$20,000
• D)$25,000
• E)$40,000

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Definitions:

Preliminary Order

An initial court order that sets conditions or arrangements in legal matters, often before a final decision is made.

Judicial Sale

A sale conducted under the supervision of a court, where the property is sold to satisfy a judgment.

Mortgagee

The lender or financial institution in a mortgage agreement, to whom the property is technically titled until the mortgage is fully paid off by the borrower.

Commercial Facilities

Premises or buildings used for commercial activities, such as retail stores, offices, or warehouses.