in the current year, abe gives an interest in a passive activity to his daughter, andrea. the value of the interest at the date of the gift is $25,000, and its adjusted basis to abe is $13,000. during the time that abe owned the investment, losses of $3,000 could not be deducted because of the passive activity loss limitations. what is the tax treatment of the suspended passive activity losses to abe and andrea? in a disposition by gift of an interest in a passive activity, any suspended losses the basis of the property. therefore, andrea's basis in the property is $fill in the blank 2. abe to deduct the suspended losses in the year of disposition.