12.20 Passive-Activity Limitations: Rental Property. L, single, is the chief of surgery al a local hospital. During the year, L earned a salary of $120.000. L owns a four unit apartment building that she rents out unfurnished. The current tenants have one-year leases, which expire at various times. This year, the property produced loss of $30,000 due to accelerated depreciation. L is actively involved in the rema activity, making many of the decisions regarding leases, repairs, etc. a. How much of the loss may L deduct? b. Would the answer to (a) change if L materially participated