During the Current Year, Ryan Performs Personal Services as Follows

During the current year, Ryan performs personal services as follows: 700 hours in his management consulting practice, 650 hours in a real estate development business, and 550 hours in an apartment leasing operation. He expects that losses will be realized from the two real estate ventures and his consulting practice will show a profit. Ryan files a joint return with his spouse whose salary is $125,000. Discuss the character and treatment of the income and losses generated by these activities.