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Suspended losses relating to the property

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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.

Reference no: EM13150524

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