Reference no: EM132697794
Problem 1: What is the correct order in which the four limitations on potential losses must be applied?
Option 1: First, basis; second, at-risk; third, passive; and last, excess business loss.
Option 2: First, basis; second, passive activity; third, at-risk; and last, excess business loss.
Option 3: First, excess business loss; second, at-risk; third, basis; and last, passive activity.
Option 4: First, passive activity; second, basis; third, excess business loss; and last, at-risk.
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