How much is deductible


Question: Mustafa, who is single, has $75,000 of salary, $10,000 of income from a limited partnership, and a $25,000 passive loss from a real estate rental activity in which he actively participates. Of the $25,000 loss, how much is deductible?

a. $0

b. $10,000

c. $27,000

d. $25,000

e. None of these

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Accounting Basics: How much is deductible
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