Ferris Owns an Interest In, but Does Not Materially Participate

question 17

Multiple Choice

Ferris owns an interest in, but does not materially participate in, an activity. He has $30,000 at-risk. The business produced a loss in the current year and Ferris's share of the loss is $45,000. Assuming Ferris has no passive income, how much of the $45,000 loss will be deductible by Ferris?

• A) $0.
• B) $30,000.
• C) $45,000.
• D)Cannot be determineD.Only $30,000 of the loss gets through the at-risk rules. However, since there is no passive income, the entire loss is suspended by the passive activity loss rules.

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Definitions:

Neurotransmitters

Chemical messengers that transmit signals across synapses from one neuron to another, influencing numerous bodily and mental functions.

Synaptic Vesicles

Small sacs within a presynaptic neuron that store neurotransmitters, which are released into the synaptic cleft to transmit signals to a postsynaptic cell.

Receptor Sites

Specific locations on the surface of a cell or within a cell where molecules, such as neurotransmitters or hormones, can bind to initiate a cellular response.

Potassium Ions

Positively charged ions (K+) that are vital for various physiological processes, including nerve signal transmission and muscle contraction.