Sage,Inc.,a closely held corporation that is not a PSC,has a $140,000 passive loss,$85,000 of active business income,and $35,000 of portfolio income.How much of the passive loss can Sage deduct?
A)$0.
B)$85,000.
C)$120,000.
D)$140,000.
E)None of the above.

Question

Quizplus · Accepted Answer

As a closely held corporation,Sage may offset $85,000 of the $140,000 passive loss against the $85,000 of active business income,but may not offset the remaining $55,000 against portfolio income.

Sage,Inc,a Closely Held Corporation That Is Not a PSC,has a $140,000