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Maria, an engineer, has an adjusted gross income of $167,000 before considering the following losses. The passive activity rules disallow the deduction for the loss in which of the following?

I. Maria has a $21,000 loss from her ownership of Family Apartment Village, a low-income housing project.
II. Maria owns and actively participates in managing a rental house across the street from East State College. This activity generates a $7,000 loss in the current year.

User Morvael
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1 Answer

4 votes
I am going to say number 1
User Vitani
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