Vic's at-risk amount in a passive activity is $200,000 at the beginning of the current year.His current loss from the activity is $80,000.Vic had no passive activity income during the year.At the end of the current year:

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Quizplus · Accepted Answer

The at-risk amount is reduced by any losses incurred during the year, so Vic's at-risk amount at the end of the year is $200,000 - $80,000 = $120,000. The $80,000 loss is a suspended passive loss because there is no passive activity income to offset it.

Vic's At-Risk Amount in a Passive Activity Is $200,000 at the Beginning