Question

In 2019, Cindy is married and files a joint return. She operates a sole proprietorship in which she materially participates. Her proprietorship generates gross income of $225,000 and deductions of $525,000, resulting in a loss of $300,000. What is Cindy's excess business loss for the year? a.$30,000. b.$280,000. c.$-0-. d.$250,000. e.None of these choices are correct.

Answer 1

c.$-0-

Step-by-step explanation:

Excess Business loss = Aggregate business deductions - Aggregate business gross income - Threshold amount

= 525,000 - 225,000 - 500,000

= $0

Therefore, Cindy's excess business loss for the year is $0.