vestment interest expense does not include:

Multiple Choice

interest expense from loans to purchase corporate bonds.

interest expense from loans to purchase stocks.

Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a $($$$18,500)$ loss; however, Michelle has sufficient tax basis and at$-$risk amounts to absorb the loss. If Michelle has $$122,000$ of salary, $$10,700$ of long$-$term capital gains, $$3,700$ of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct?

Multiple Choice

$$0$; losses from rental property are passive losses and can only be offset by passive income.

$$11,700$

$$6,800$

$$18,500$

None of the choices are correct.