Josie, an Unmarried Taxpayer, Has $155,000 in Salary, $10,000 in Income

question 109

Multiple Choice

Josie, an unmarried taxpayer, has $155,000 in salary, $10,000 in income from a limited partnership, and a $26,000 passive activity loss from a real estate rental activity in which she actively participates. If her modified adjusted gross income is $155,000, how much of the $26,000 loss is deductible?

• A) $0
• B) $10,000
• C) $25,000
• D) $26,000
• E) None of the above

---

Definitions:

Larger

Comparatively greater in size, quantity, or extent.

Herbal Remedies

Natural plant-based products used to prevent, alleviate, or cure diseases and conditions, often part of traditional or alternative medicine practices.

Nutritional Supplements

Products taken orally that contain dietary ingredients intended to supplement the diet, such as vitamins, minerals, herbs, or amino acids.