In the current year, a taxpayer reports the following items: Salary $50,000 Income from partnership A, in which the taxpayer materially participates 20,000 Passive activity loss from partnership B (40,000) During the year, the taxpayer disposed of the interest in partnership B, which had a suspended loss carryover of $10,000 from prior years. What is the taxpayer's adjusted gross income for the current year

Usually, passive loss cannot be taken without passive gain.

but when that passive activity interest has been sold in that year, the loss in that activity can be taken

Explanation:

$20,000

Explanation:

taxpayer's adjusted gross income = salary ($50,000) + income from partnership ($20,000) - passive loss from partnership ($40,000) - previously suspended carryover loss ($10,000) = $20,000

The salary and partnership income increase taxable income. Since the passive losses were attributable to passive activities form the partnership, they will decrease the taxpayer's income (including the carryover loss).

answer; descriptive statistics;

answer; the nav calculated at the market close at 4: 00 pm new york time;