Justin Has AGI of $110,000 Before Considering His $30,000 Loss

question 912

Multiple Choice

Justin has AGI of $110,000 before considering his $30,000 loss from rental property, which he actively manages. How much of the rental loss can Justin deduct this year?

• A) $20,000
• B) $25,000
• C) $10,000
• D) $30,000

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Definitions:

Copy A

This term is often associated with tax forms, where Copy A is the official part of a form sent to a tax authority, like the IRS, detailing financial information.

Form W-2

A tax form used in the United States to report wages paid to employees and the taxes withheld from them.

Wages

Compensation received by employees for services performed, usually based on hours worked or a fixed salary.

Household Workers

Employees who perform domestic service in a home, such as cleaners, maids, and gardeners.