Pat Sells a Passive Activity for $100,000 That Has an Adjusted

question 35

Essay

Pat sells a passive activity for $100,000 that has an adjusted basis of $55,000. During the years of her ownership,
$60,000 of losses have been incurred that were suspended under the passive activity loss rules. In addition, the passive activity generated tax credits of $10,000 that were not utilized and suspended. Determine the tax treatment to Pat on the disposition of the property.

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Definitions:

Social Accomplishment

Achievements or milestones that are recognized and valued within a social context, such as academic, professional, or personal successes.

Ethnomethodologists

Social scientists who study how people use everyday social interactions to construct a shared social reality, emphasizing the methods and practices used to make sense of the social world.

Sociologists

Professionals or academics who study the development, structure, and functioning of human society and the interactions among individuals within it.

Ethnomethodologists

study the way people make sense of their everyday world, particularly how they produce and sustain social order in their interactions.