Travis is a 30% owner of 3 rental houses. He spends 625 hours a year managing the properties. In addition, he owns a 20% interest in a real estate business to which he devotes 1,800 hours a year. The rental units generate a total loss of $22,000, and Travis' adjusted gross income in the current year, before considering the rental properties, is $120,000. 

How much of the loss can Travis deduct?

Answer rating: 100% (QA)

To determine the amount of the rental property loss that Travis can deduct we need to consider the passive activity loss rules outlined by the Interna... View the full answer