Victor Is a 40% Owner (Member) of Real Properties R

question 28

Multiple Choice

Victor is a 40% owner (member) of Real Properties R Us, LLC (RPRU) . During the current tax year, RPRU reported a loss from rental real estate activities of ($200,000) which is treated as a passive loss. Victor is a material participant in RPRU and meets the active participation requirements for rental real estate activities. His modified AGI is $120,000. In addition, Victor has passive income from other sources of $60,000. Assuming Victor meets the basis and at risk limitations, what amount of the RPRU loss may Victor deduct under the passive loss rules?

• A) $80,000.
• B) $75,000.
• C) $70,000.
• D) $60,000.
• E) $0.

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