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?

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Business

Mckenna Alvarado

11 November, 14:58

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?

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Xander Payne · Answer 1

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

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.