Question:
Dorothy acquired passive Activity A in January 2005 and Activity B in September 2006.Through 2008, Activity A was profitable, but it produced losses of $200,000 in 2009 and $100,000 in 2010. Dorothy has passive income from Activity B of $20,000 in 2009 and $40,000 in 2010. After offsetting passive income, how much of the net losses may she deduct?