4.4.16. Kate is married to John, and they lived together all year. They elected to file separate returns. Kate had $70,000 in wages, $15,000 income from a limited partnership, a $26,000 loss from rental real estate activities in which she actively participated, and less than $100,000 of modified adjusted gross income. She can use $15,000 of her $26,000 rental loss to offset her passive income from the partnership and the remaining $11,000 to offset her nonpassive income. A. True. B. False