Question: Carlos will use the single filing status when he files his 2022 return. His modified adjusted gross income is $90,000. This includes a $6,000 gain

Carlos will use the single filing status when he files his 2022 return. His modified adjusted gross income is $90,000. This includes a $6,000 gain from a limited partnership and $84,000 of income from wages. While Carlos invested in the partnership, he is not involved in the day-to-day activities of the business. Carlos also incurred a loss of $10,000 from a rental real estate activity. Although he actively participates in the activity, he is not a real estate professional.

What is the net amount of passive activity losses from these activities that Carlos may claim on his 2022 return?

A. $0

B. $3,000

C. $4,000

D. $10,000

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