2019 tax year

Calculator Becker CPA Review 11-2 Michael owns a rental house that generated a $10,000 loss this year. Michael manages the rental property but does not meet the standards for material participation. Michael is a college professor and has wages of $60,000 and $5,000 in dividend income. How is the $10,000 rental real estate loss treated on Michael's tax retur? O $5,000 of the loss is deductible against the passive dividend income. Ob. The rental loss is not deductible because Michael does not have any passive income. OC $10,000 loss is not deductible because Michael does not materially participate in the rental activity Od $10,000 loss is deductible under the rental real estate exception because Michael actively participates in the rental activity