What amount of the suspended losses is allocated


Sarah has investments in four passive activity partnerships purchased several years ago. Last year, the income and losses were as follows: Activity Income (Loss) A $50,000 B (50,000) C (20,000) D (10,000) In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. How will the sale of Activity D affect Sarah's taxable income in the current year?

1.. The amount of suspended losses carried forward to the year of the sale is $ 30000

2. What amount of the suspended losses is allocated to Activity D? $ 3750

3. The amount of suspended losses carried forward to the year of the sale is $ .???

4. What amount of the suspended losses is allocated to Activity D???

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Accounting Basics: What amount of the suspended losses is allocated
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