Sandra Acquired a Passive Activity Three Years Ago

Sandra acquired a passive activity three years ago. Until last year, the activity was profitable and her at-risk amount was $300,000. Last year, the activity produced a loss of $100,000, and in the current year, the loss is $50,000. Assuming Sandra has received no passive activity income in the current or prior years, her suspended passive activity loss from the activity is:

A) $90,000 from last year and $50,000 from the current year.
B) $100,000 from last year and $50,000 from the current year.
C) $0 from last year and $0 from the current year.
D) $50,000 from the current year.
E) None of the above.

Correct Answer:

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