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Unformatted text preview: (revised AGI = $60,000). He does not have any suspended passive losses. Activity Income (loss) Tax credits A (12,000) 2,100 B (18,000) C 10,000 Net passive loss (20,000) After deducting the net passive loss of $20,000, Irving has a deduction of $5,000 remaining [$25,000 (maximum loss allowed) – $20,000 (utilized loss)]. Therefore, the maximum credit Irving may claim this year is $1,400 [$5,000 (remaining deduction) x 28% (marginal tax rate)]. Irving has a suspended tax credit of $700....
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This note was uploaded on 03/03/2010 for the course ACG 6845 taught by Professor Kelliher during the Spring '09 term at University of Central Florida.
- Spring '09