Josie,an Unmarried Taxpayer,has $155,000 in Salary,$10,000 in Income from a Limited

question 18

Multiple Choice

Josie,an unmarried taxpayer,has $155,000 in salary,$10,000 in income from a limited partnership,and a $26,000 passive 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

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Definitions:

Congressional Budget Office

A nonpartisan federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.

Economic Policy

Decisions made by governments concerning the economic goals of the nation and the methods of achieving those goals.

Y-Coordinate

The vertical position in a two-dimensional Cartesian coordinate system, representing the distance from the x-axis.

X-Coordinate

A numerical value that represents a specific point's horizontal position in a coordinate system.