Brandon,a single taxpayer,had a loss of $48,000 from a rental real estate activity in which he actively participated.He also had $27,000 of income from another rental real estate activity in which he actively participated.He acquired both investments in the current year.If Brandon has no other passive income or losses and has adjusted gross income of $84,000 before considering passive activities,how much loss from rental activities can he use to offset his nonpassive income?
A)$21,000
B)$24,000
C)$25,000
D)$45,000

Question

Quizplus · Accepted Answer

A)$27,000 of the loss offsets $27,000 income from the other passive activity,leaving a net $21,000 loss.The $21,000 net rental loss may offset nonpassive income using the special allowance of up to $25,000.

Brandon,a Single Taxpayer,had a Loss of $48,000 from a Rental