If a Taxpayer Sells a Passive Activity with Suspended Passive

question 4

Multiple Choice

If a taxpayer sells a passive activity with suspended passive activity losses from prior years, what type of income can be offset by the suspended passive losses in the year of sale?

• A) Passive activity income
• B) Portfolio income
• C) Active business income
• D)Any of these types of income can be offset.
• E)None of these

---

Definitions:

Psychographics

A way to categorize audiences based on their attitudes, opinions, and values.

Platform Specifics

Refers to the unique features, audience, and best practices associated with each social media platform.

Type of User

A category or classification of users based on their interests, behaviors, or characteristics relevant to a specific platform or service.

Unfollow/Follow Technique

A method used on social media platforms where a user unfollows then immediately follows another account to attract attention or encourage a follow-back, often as a strategy to increase one's own followers.