Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1994. He also

Question:

Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1994. He also acquired a rental house in 2020, which he actively manages. During 2020, 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 $130,000.
a. Calculate the amount of Walter's allowable loss for rental house activities for 2020. b. Calculate the