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Bizhelp
Bizhelp, CPA
Category: Single Problem
Satisfied Customers: 5884
Experience:  BA degree and Certified Public Accountant
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An insurance company executive, earned a salary last year of

Customer Question

Steve, an insurance company executive, earned a salary last year of 90,000 and received $25,000 in dividends and interests during the year. In addition, he incurred a loss of $40,000 from an investment in a passive activity. His at-risk amount in the activity
at the beginning of the year is $55,000. What is Steve's adjusted gross income for this year?
Submitted: 1 year ago.
Category: Single Problem
Expert:  Bizhelp replied 1 year ago.

Hi,

Thanks for your question.

Adjusted Gross Income = 90,000 salary + 25,000 dividend/interest = $115,000

The $40,000 passive loss cannot be deducted since it may only be used against passive income of the activity.

Hope this helps!

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