Clarisse's loss on her rental property was $35,000. How should she report this loss on her...

 

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Clarisse's loss on her rental property was $35,000. How should she report this loss on her tax return? a) It can be deducted from nonpassive income. b) It can be deducted against nonpassive income, but only up to $25,000. The other $10,000 may be carried back or carried forward. c) It can be deducted against nonpassive income, but only up to $25,000. The other $10,000 may offset only passive income in the current period or, if not deductible, may be carried forward. d) It cannot be deducted from nonpassive income at all if modified adjusted gross income exceeds $100,000. Clarisse's loss on her rental property was $35,000. How should she report this loss on her tax return? a) It can be deducted from nonpassive income. b) It can be deducted against nonpassive income, but only up to $25,000. The other $10,000 may be carried back or carried forward. c) It can be deducted against nonpassive income, but only up to $25,000. The other $10,000 may offset only passive income in the current period or, if not deductible, may be carried forward. d) It cannot be deducted from nonpassive income at all if modified adjusted gross income exceeds $100,000. Clarisse's loss on her rental property was $35,000. How should she report this loss on her tax return? a) It can be deducted from nonpassive income. b) It can be deducted against nonpassive income, but only up to $25,000. The other $10,000 may be carried back or carried forward. c) It can be deducted against nonpassive income, but only up to $25,000. The other $10,000 may offset only passive income in the current period or, if not deductible, may be carried forward. d) It cannot be deducted from nonpassive income at all if modified adjusted gross income exceeds $100,000. Clarisse's loss on her rental property was $35,000. How should she report this loss on her tax return? a) It can be deducted from nonpassive income. b) It can be deducted against nonpassive income, but only up to $25,000. The other $10,000 may be carried back or carried forward. c) It can be deducted against nonpassive income, but only up to $25,000. The other $10,000 may offset only passive income in the current period or, if not deductible, may be carried forward. d) It cannot be deducted from nonpassive income at all if modified adjusted gross income exceeds $100,000.

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