In 2010,Glenda Had a $97,000 Loss on a Passive Activity

question 26

Multiple Choice

In 2010,Glenda had a $97,000 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 2010,Glenda can deduct $97,000 for regular income tax purposes and for AMT purposes.
• B)Glenda will have a $97,000 tax preference in 2010 as a result of the passive activity.
• C)For regular income tax purposes,none of the loss is allowed in 2010.
• D)In 2010,Glenda will have a positive adjustment of $25,000 as a result of the passive loss.
• E)None of the above.

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