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9 June, 02:31

5. Josh has investments in two passive activities. Activity A (acquired three years ago) produces income of $30,000 this year, while Activity B (acquired two years ago) produces a loss of $50,000. What are the amounts of Josh's deductible loss and suspended loss for the year?

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  1. 9 June, 04:21
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    Answer: $30 000 loss is deductible, $20 000 is suspended

    Explanation:

    Passive losses are only deducted from passive income. deduction is limited to $500 000 for jointly married couples and $250 000 single tax payers.

    Passive income is $30 000, therefore $ 30 000 out of the $50 000 loss is deductible, the suspended loss is $20 000
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