Question

Melinda earns wages of $80,000, income from a limited partnership of $10,000, and a $30,000 passive activity loss from a real estate rental activity in which she actively participates. Her modified adjusted gross income is $80,000. Of the $30,000 loss, Melinda may deduct:

Answer 1

Melinda may deduct is $30,000

Step-by-step explanation:

given data

income = $80,000

limited partnership loss = $10,000

gross income = $80,000

loss = $30,000

solution

we know that here entire loss will be deducted

so as $10,000 loss is deducted form income from limited partnership

and balance is $20,000 from salary income

because she actively participates in the activity

so Melinda may deduct is $30,000