Randy owns rental property and is an active participant in the management & upkeep of the...
Randy owns rental property and is an active participant in the management & upkeep of the property. Unfortunately the property suffered a loss of $24,000. If Randy's AGI is $150,000 for the current year, what is his available loss against ordinary income assuming he has the required amount at risk? 1. $12,500 2. $24,000 3. $0 4. $12,000.
Homework Answers
Ans: The correct option for the answer is option C i.e. $0
As Randy AGI is $150,000 for the current year, therefore available loss against ordinary income is $0 as according to the condition an individual may deduct up to $25,000 of real estate loss per year as long as their adjusted gross income is $100,000 or less. and as limit approaches to $150,000 individuals are not eligible for the deduction
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