Fella
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Joined: 19 Nov 2011
Location: United States
Online Status: Offline
Posts: 68
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| Posted: 13 Jul 2012 at 14:08 | IP Logged
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Hi,
I have an MC question that I cannot understand. Could
anyone explain the answer? Thanks
In the current year a taxpayer report following items:
Salary $50,000
Income from Partnership A in which taxpayer materially
participates $50,000
Passive activity loss from partnership B ($40,000)
During the year, taxpayer disposed of the interest in
partnership B, which had a suspended loss carryover of
$10,000 from prior years. What is the taxpayer's AGI for
current year?
The answer is $20,000
Calculated:
Salary $50,000
Income from partnership A $20,000
PAL from partnership B ($40,000)
Loss carryover from partnership B (10,000)
AGI = $20,000
I don't understand why it says in the answer that the
income from partnership A was $20,000. The assignment
says that it was $50,000.
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Topic: MC Question
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