In year one, Eileen purchases a house and uses it as her primary residence. In year two, Eileen changes her primary residence and decides to rent out her former residence. Eileen hires a rental agent to handle day-to-day problems but she approves new tenants, sets rental terms and approves capital or repair expenditures.?Eileen's loss from the rental property is $8,000 and her other adjusted gross income is $40,000. How much of the loss is deductible?

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Eileens rental property loss of 8000 is deductible as a passive activity lo... View the full answer