Nancy Has Active Modified Adjusted Gross Income Before Passive Losses

question 90

Multiple Choice

Nancy has active modified adjusted gross income before passive losses of $125,000. She has a loss of $15,000 on a rental property she actively manages. How much of the loss is she allowed to deduct against the $125,000 of other income?

• A)None
• B)$2,500
• C)$5,000
• D)$12,500

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Definitions:

Posterior Thigh

The back part of the thigh, consisting of muscles like the hamstrings that are involved in extending the hip and flexing the knee.

Iliopsoas

A major hip flexor muscle, composed of the iliacus and psoas major muscles, important for walking and running.

Quadriceps

A large muscle group that includes the four prevailing muscles on the front of the thigh, responsible for extending the knee and flexing the hip.

Adductor Femoris

A muscle in the thigh that helps in the adduction and medial rotation of the femur.