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How much of the loss can Travis deduct

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Reference no: EM132493956

Question - Travis is a 30% owner of 3 rental houses. He spends 625 hours a year managing the properties. In addition, he owns a 20% interest in a real estate business to which he devotes 1,800 hours a year. The rental units generate a total loss of $22,000, and Travis' adjusted gross income in the current year, before considering the rental properties, is $120,000. How much of the loss can Travis deduct?

a. $-0-

b. $4,500

c. $6,600

d. $15,000

e. $22,000

Reference no: EM132493956

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