Question: Problem 4-3 (Algorithmic) Passive Loss Limitations (LO 4.2) Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1991. He also

Problem 4-3 (Algorithmic) Passive Loss Limitations (LO 4.2) Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1991. He also acquired a rental house in 2017, which he actively manages. During 2017, Walter's share of the partnership's losses was $25,000, and his rental house generated $44,000 in losses. Walter's modified adjusted gross income before passive losses is $121,500. If an amount is zero, enter "0".

a. Calculate the amount of Walter's allowable deduction for rental house activities for 2017.

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