Ned has active modified adjusted gross income before passive losses of $160,000. He has a loss of $15,000 on rental property he actively manages. How much of the loss is he allowed to deduct against his other income?
A)None
B)$10,000
C)$15,000
D)$5,000

Question

Quizplus · Accepted Answer

Ned's income exceeds the $150,000 threshold for the passive activity loss deduction for rental real estate, so he cannot deduct any of the $15,000 loss against his other income.

Ned Has Active Modified Adjusted Gross Income Before Passive Losses