Noah Yobs, age $55,$ who has $\backslash (\backslash$$ $58,600\backslash )$ of AGI $($solely from wages$)$ before considering rental activities, has $\backslash (\backslash$$ $52,740\backslash )$ of losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity from which he has $\backslash (\backslash$$ $29,300\backslash )$ of income. He has other passive activity income of $\backslash (\backslash$$ $18,752\backslash ).$ What amount of rental loss can Noah use to offset active or portfolio income in the current year?

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The passive activity loss limits contain two exceptions related to real estate activities. These exceptions allow all or part of real estate rental losses to offset active or portfolio income even though the activity otherwise is defined as a passive activity.