Question

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

Answer 1

Answer:

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.