Owning a passive activity with an adjusted basis


Jan dies in 2009 owning a passive activity with an adjusted basis of $60,000. Its fair market value at that date is $65,000. Suspended losses relating to the property were $15,000. Which of the following statements is true?

a. The heir's adjusted basis is $65,000, and Jan's final deduction is $10,000.

b. The heir's adjusted basis is $65,000, and Jan's final deduction is $15,000.

c. The heir's adjusted basis is $60,000, and Jan's final deduction is $15,000.

d. The heir's adjusted basis is $80,000, and Jan has no final deduction.

e. None of the above.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Owning a passive activity with an adjusted basis
Reference No:- TGS080176

Expected delivery within 24 Hours