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Ilene rents her second home. During the year, Ilene reported a net loss of $11,400 from...

Ilene rents her second home. During the year, Ilene reported a net loss of $11,400 from the rental. If Ilene is an active participant in the rental and her AGI is $136,000, how much of the loss can she deduct against ordinary income in the year?

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Answer #1

Loss that can be deducted =[$ 25,000 - { ( $ 136,000 - $ 100,000 ) *0.5 } ]

= $ 7,000

Correct Answer is $ 7,000.

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