Net impact on agi due to passive activity


Jeff owned one passive activity. Jeff sold the activity and realized a $2,000 gain on the sale. Prior to the sale, he realized a current year loss from the activity of $6,000. In addition, he has suspended losses from prior years of $7,000. What is the net impact on Jeff's AGI this year due to the passive activity?

A) Increase of $2,000.

B) No net change.

C) Decrease of $4,000.

D) Decrease of $11,000.

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Accounting Basics: Net impact on agi due to passive activity
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