Harvey rents his second home.During 2019, Harvey reported a net loss of $35,000 from the rental.If Harvey is an active participant in the rental and his AGI is $80,000, how much of the loss can he deduct against ordinary income in 2019?

Question

Quizplus · Accepted Answer

Since Harvey is an active participant in the rental and his AGI is less than $100,000, he can deduct up to $25,000 of rental losses against his ordinary income. Therefore, he can deduct $25,000 of the $35,000 net loss from the rental in 2019. The remaining $10,000 will carry forward to future tax years.

Harvey Rents His Second Home