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T-13. Billy owns several parcels of rental real estate, and he actively participates in managing the...

T-13. Billy owns several parcels of rental real estate, and he actively participates in managing the properties. His total loss from these activities in 2018 is $30,000. Assuming that his AGI for 2018 is $110,000, what is the allowable deduction from these properties in 2018?

a.         $0

b.         $15,000

c.         $20,000

d.         $30,000

Please show your calculations. Thanks.

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Answer #1

Any: (c) $20,000 Four figths of the $25000 enpention to the passive loss rules is allowed based on this AGI.

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