In 2018, Glenn Recorded a $108,000 Loss on a Passive

Multiple Choice

In 2018, Glenn recorded a $108,000 loss on a passive activity. None of the loss is attributable to AMT adjustments or preferences. She has no other passive activities. Which of the following statements is correct?

A) In 2018, Glenn can deduct $108,000 for regular income tax purposes and for AMT purposes.
B) Glenn reports a $108,000 tax preference in 2018 as a result of the passive activity.
C) For regular income tax purposes, none of the passive activity loss is allowed in 2018.
D) In 2018, Glenn reports a positive adjustment of $25,000 as a result of the passive activity loss.