Leon sells his interest in a passive activity for $191,500. Determine the tax effect of the sale based on each of the following independent facts: a. Adjusted basis in this investment is $67,025. Losses from prior years that were not deductible due to the passive activity loss restrictions total $73,728. The taxable gain is $______. The suspended losses at the end of the year are $________. b. Assume the same sales price but the adjusted basis in this investment is $143,625. Losses from prior years that were not deductible due to the passive activity loss restrictions total $73,728. The taxable gain is $______. The suspended losses at the end of the year are $________. c. Assume the same sales price but the adjusted basis in this investment is $143,625. Losses from prior years that were not deductible due to the passive activity loss restrictions total $73,728. In addition, suspended credits total $19,150. The taxable gain is $______. The suspended losses at the end of the year are $________. The suspended credits at the end of the year are _______.
Leon sells his interest in a passive activity for $191,500. Determine the tax effect of the sale based on each of the following independent facts:
a. Adjusted basis in this investment is $67,025. Losses from prior years that were not deductible due to the passive activity loss restrictions total $73,728.
The taxable gain is $______.
The suspended losses at the end of the year are $________.
b. Assume the same sales price but the adjusted basis in this investment is $143,625. Losses from prior years that were not deductible due to the passive activity loss restrictions total $73,728.
The taxable gain is $______.
The suspended losses at the end of the year are $________.
c. Assume the same sales price but the adjusted basis in this investment is $143,625. Losses from prior years that were not deductible due to the passive activity loss restrictions total $73,728. In addition, suspended credits total $19,150.
The taxable gain is $______.
The suspended losses at the end of the year are $________.
The suspended credits at the end of the year are _______.
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