During the year, Mark reports $90,000 of active business income from his law practice. He also owns two passive activities. From Activity A, he earns $20,000 of income, and from Activity B, he incurs a $30,000 loss. As a result, Mark a.reports AGI of $80,000. b.reports AGI of $90,000 with a $10,000 passive loss carryover. c.reports AGI of $90,000 with a $30,000 passive loss carryover. d.reports AGI of $110,000 with a $30,000 passive loss carryover.

B. Reports AGI of $90,000 with a $10,000 passive loss carryover is correct.

Answered: During the year, Mark reports $90,000…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter11: Invest Or Losses

Section: Chapter Questions

Problem 39P

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During the year, Mark reports $90,000 of active business income from his law practice. He also owns two passive activities. From Activity A, he earns $20,000 of income, and from Activity B, he incurs a $30,000 loss. As a result, Mark

	a.	reports AGI of $80,000.
	b.	reports AGI of $90,000 with a $10,000 passive loss carryover.
	c.	reports AGI of $90,000 with a $30,000 passive loss carryover.
	d.	reports AGI of $110,000 with a $30,000 passive loss carryover.

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