In the Current Year, Kelly Had a $35,000 Loss from a Real

question 18

True/False

In the current year, Kelly had a $35,000 loss from a real estate rental activity in which she is a 10% owner. If she is an active participant and if her modified AGI is $100,000, she can deduct $25,000 of the loss.

---

Definitions:

Diminished Sense

A reduction in the capacity to perceive or experience stimuli through any of the senses, such as sight, hearing, touch, taste, or smell.

Xerostomia

A medical condition characterized by dry mouth due to reduced or absent saliva flow, often causing discomfort and dental problems.

Limited Vision

Limited vision refers to a decrease in the ability to see to a significant degree but not to the point of total blindness, often requiring special accommodations.

Sensory Deprivation

A condition in which one or more of the senses is reduced or eliminated, often used as a therapy or in experiments.