LO 3.2 3. Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985.

He also acquired a rental house in 2010, which he actively manages. During 2010,Walter’s share of the partnership’s losses was $30,000, and his rental house generated $20,000 in losses. Walter’s modified adjusted gross income before passive losses is $120,000.

a. Calculate the amount of Walter’s allowable deduction for rental house activities for 2010.

$ ____________

b. Calculate the amount of Walter’s allowable deduction for the partnership losses for 2010.

$ ____________

c. What may be done with the unused losses, if anything?

____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _______________________________________________________________________