Harvey rents his second home. During the year, 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 for the year?

Question

Quizplus · Accepted Answer

Harvey can deduct up to $25,000 of the rental loss against his ordinary income, assuming he actively participates in the rental and his AGI is less than $100,000. The remaining $10,000 loss can be carried forward to future years.

Harvey Rents His Second Home