Nell Sells a Passive Activity with an Adjusted Basis of $45,000

Nell sells a passive activity with an adjusted basis of $45,000 for $105,000. Suspended losses attributable to this property total $45,000. The total gain and the taxable gain are:

A) $60,000 total gain? $105,000 taxable gain.
B) $10,000 total gain? $15,000 taxable gain.
C) $60,000 total gain? $0 taxable gain.
D) $60,000 total gain? $15,000 taxable gain.
E) None of the above.

Correct Answer:

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