Starling Corporation,a closely held personal service corporation,has $90,000 of active income,$54,000 of portfolio income,and a $135,000 loss from a passive activity.How much of the passive loss can Starling deduct?
A)$0.
B)$54,000.
C)$90,000.
D)135,000.
E)None of the above.

Question

Quizplus · Accepted Answer

Personal service corporations cannot offset passive losses against either active or portfolio income.

Starling Corporation,a Closely Held Personal Service Corporation,has $90,000 of Active