In 2018, Theo, a Single Taxpayer, Operates a Sole Proprietorship

question 65

Multiple Choice

In 2018, Theo, a single taxpayer, operates a sole proprietorship in which he materially participates. His proprietorship generates gross income of $320,000 and deductions of $600,000, resulting is a loss of $280,000. The large deductions are due to the acquisition of equipment and the use of immediate expense and additional first-year depreciation to deduct all of the acquisitions. What is Theo's excess business loss for the year?

• A) $-0-.
• B) $30,000.
• C) $250,000.
• D) $280,000
• E) None of the above.

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Definitions:

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