Answer: Ilene can deduct $15,000 of the rental loss against her ordinary income in 2022.
Explanation: To determine how much of the rental loss Ilene can deduct against ordinary income in 2022, we first need to determine if she meets the criteria to be considered an active participant in the rental activity. According to IRS rules, to be considered an active participant, Ilene must have owned at least 10% of the property and have actively participated in the rental activity during the year. This can include activities such as advertising for tenants, setting rental terms, approving tenants, and making repairs or improvements to the property. Assuming Ilene meets the criteria to be considered an active participant in the rental activity, the amount of rental loss that she can deduct against ordinary income in 2022 will depend on her modified adjusted gross income (MAGI) and the amount of the rental loss. If Ilene's MAGI is less than $150,000, she can deduct up to $25,000 of rental losses against ordinary income.
However, if her MAGI is between $150,000 and $170,000, the amount of rental loss she can deduct will be reduced, and if her MAGI is greater than $170,000, she cannot deduct any rental losses against ordinary income. In this case, Ilene's MAGI is $140,000, which is less than $150,000. Therefore, she can deduct up to $25,000 of rental losses against ordinary income. However, since her net rental loss for the year was $15,000, she can only deduct up to that amount against her ordinary income in 2022.
Therefore, Ilene can deduct $15,000 of the rental loss against her ordinary income in 2022. The remaining $10,000 of the rental loss can be carried forward and deducted in future years, subject to the same MAGI limitations.