In 2018, Cindy is married and files a joint return. She operates a sole proprietorship in which she materially participates. Her proprietorship generates a gross income of $225,000 and deductions of $525,000, resulting in a loss of $300,000. What is Cindy's excess business loss for the year?

a. $-0-.

b. $30,000.

c. $250,000.

d. $280,000.

e. None of the abov

Question

Business

Jayvion Yates

5 October, 10:15

In 2018, Cindy is married and files a joint return. She operates a sole proprietorship in which she materially participates. Her proprietorship generates a gross income of $225,000 and deductions of $525,000, resulting in a loss of $300,000. What is Cindy's excess business loss for the year?

a. $-0-.

b. $30,000.

c. $250,000.

d. $280,000.

e. None of the abov

+3

Answers (1)

Know the Answer?

Theresa Gutierrez · Answer 1

E. None of the above

Explanation:

Aggregate business deductions $52

Less: Aggregate business gross income and gains (225,00 Less: Threshold amount (250,00) Excess business loss $50000

Therefore the excess business loss is $50000 which none of the above given choices. The correct answer for this problem is therefore none of the above.