Shaunda has AGI of $90,000 and owns rental property generating a $27,000 loss.She actively manages the property.Her deductible loss is
A)$0.
B)$13,500.
C)$25,000.
D)$27,000.

Question

Quizplus · Accepted Answer

As an active participant in the rental property, Shaunda can deduct up to $25,000 of rental losses against her other income. Since her rental loss is $27,000, she can deduct $25,000 and carry forward the remaining $2,000 to future years. Therefore, her deductible loss is $25,000.

Shaunda Has AGI of $90,000 and Owns Rental Property Generating