L, single, is the chief of surgery at a local hospital. Duringthe year, L earned a salary of $120,000. L owns a four-unitapartment building that she rents out unfurnished. The currenttenants have one-year leases, which expire at various times. Thisyear, the property produced a loss of $30,000 due to accelerateddepreciation. L is actively involved in the rental activity, makingmany of the decisions regarding leases, repairs, etc.

a) How much of the loss may L deduct?

b) Would the answer to (a) change if L materiallyparticipated?

Answer rating: 100% (QA)

a How much of the loss may L deduct Rental Income and Expenses Rental Income Unknown not provided Re... View the full answer