Lucy has AGI of $120,000 before considering losses from some rental real estate she owns (she actively participates). She had the following losses from her rental property: 11eb79ad_03ef_7619_9598_e1eec85762be_SM1713_00 a. How much of the losses can Lucy deduct? b. If Lucy's AGI before the losses was $90,000, how much of the losses can she deduct?

Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Edition 4ISBN: 978-0078110993

Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Edition 4ISBN: 978-0078110993

Exercise 40

Lucy has AGI of $120,000 before considering losses from some rental real estate she owns (she actively participates). She had the following losses from her rental property:

a. How much of the losses can Lucy deduct?
b. If Lucy's AGI before the losses was $90,000, how much of the losses can she deduct?

Explanation

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Passive activity: An investment made by ...