36. A real estate professional owns ten rental propefties. The real estate activities are his sole occupation which he works at all year. He was involved in the operation of all the properties on a regular, continuous, and substantial basis. At the end of the year his real estate operations resulted in a $75,000 net loss. His spouse had received $90,000 in wages. Their only other income during the year was $5,000 interest. Which of the following statements is true? A. They may fully offset their $95,000 income with their $75,000 real estate loss on their joint tax return. B. They may not offset their $95,000 income with any real estate loss on their joint tax return. C. They may offset their $95,000 income with $25,000 of their real estate loss on their joint tax return if actively participated in the real estate activity. D. None of the above statements is true. 36. A real estate professional owns ten rental propefties. The real estate activities are his sole occupation which he works at all year. He was involved in the operation of all the properties on a regular, continuous, and substantial basis. At the end of the year his real estate operations resulted in a $75,000 net loss. His spouse had received $90,000 in wages. Their only other income during the year was $5,000 interest. Which of the following statements is true? A. They may fully offset their $95,000 income with their $75,000 real estate loss on their joint tax return. B. They may not offset their $95,000 income with any real estate loss on their joint tax return. C. They may offset their $95,000 income with $25,000 of their real estate loss on their joint tax return if actively participated in the real estate activity. D. None of the above statements is true