Passive Losses. In the current year Alice reports $150,000 of salary income, $20,000 of income from.


Passive Losses. In the vulgar year Alice reports $150,000 of allowance allowance, $20,000 of allowance from courage X, and $35,000 and $15,000 losses from activities Y and Z, deferenceively. All three activities are inert delay deference to Alice and are purchased during the vulgar year. What is the equality of forfeiture that may be subtracted delay deference to each of these activities? Also appraise the equality of forfeiture that must be carried aggravate for each courage. 1:9-43 Inert L osses. In the vulgar year Clay reports allowance and forfeiturees from the forthcoming activities:

Activities X, Y, and Z are all inert delay deference to Clay. Activity Z has $40,000 in inert forfeiturees which are carried aggravate from the prior year. In the vulgar year Clay sells courage Z for a taxable form of $30,000.

a. What is the equality of forfeiture that Clay may subtract and what is the equality that must be carried aggravate in the vulgar year?

b. Based merely on the equalitys aloft, appraise Clay's AGI for the vulgar year.