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13 December, 13:35

In 2018, Cindy is married and files a joint return. She operates a sole proprietorship in which she materially participates. Her proprietorship generates 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. $250,000.

b. $280,000.

c. $-0-.

d. $30,000.

e. None of these choices are correct.

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Answers (1)
  1. 13 December, 14:30
    0
    c. $-0-.

    Explanation:

    Excess Business loss

    = Aggregate business deductions - Aggregate business gross income - Threshold amount

    = $525,000 - $225,000 - $500,000

    = $0

    Therefore, Cindy's excess business loss for the year is $0.
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Home » Business » In 2018, Cindy is married and files a joint return. She operates a sole proprietorship in which she materially participates. Her proprietorship generates gross income of $225,000 and deductions of $525,000, resulting in a loss of $300,000.
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