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?

Answer 1

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

Step-by-step explanation:

Particulars Amount($)

Aggregate business deductions 525,000

Aggregate business gross income (225,000)

Threshold amount (500,000)

Excess Business loss 0

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