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1 May, 00:28

9. Pablo, who is single, has $95,000 of salary, $10,000 of income from a limited partnership, and a $27,000 passive activity loss from a real estate rental activity in which he actively participates. His modified adjusted gross income is $95,000. Of the $27,000 loss, how much is deductible?

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  1. 1 May, 00:58
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    Answer: The entire $27,000.

    Explanation:

    This is because the entire loss may be deducted.

    $10,000 - deducted against the passive income from the limited partnership

    $17,000 - which Is rental real estate loss and is deducted against Pablo's salary because he actively participated in the activity.
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