Elijah Owns an Apartment Complex That He Actively Manages

question 55

Essay

Elijah owns an apartment complex that he actively manages.Elijah paid $300,000 cash for the apartment complex three years ago.During 2014,the rental activity generated a loss of $30,000.How much of the loss can Elijah deduct in 2014 in both of the following independent cases?
a.Elijah has $80,000 of AGI (salary)before considering the loss generated by the apartment building.
b.Elijah has $120,000 of AGI (salary)before considering the loss generated by the apartment building.

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