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Carey, a Single Taxpayer, Purchased a Rental House in 2018

Question 95

Multiple Choice

Carey, a single taxpayer, purchased a rental house in 2018, which he actively manages.During 2018, Carey had a loss of $14,000 from the rental house.If Carey's adjusted gross income for 2018 is $138,000 before the rental loss, what is the amount of Carey's allowable deduction for the rental activity for 2018?


A) $0
B) $3,000
C) $6,000
D) $12,000
E) None of the above

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