Nancy is the owner of an apartment complex. She actively participates in the management of the building.

Question:

Nancy is the owner of an apartment complex. She actively participates in the management of the building. During the current year, it generates a taxable loss of $27,000. Nancy's other sources of income are salary of $52,000 and interest of $21,000. What is Nancy's allowable loss from the apartment?a. $ - 0 -
b. $18,000
c. $25,000
d. $27,000
e. None of the above.