A taxpayer has an AGI of $135,000 without taking into consideration $40,000 of losses from rental real estate activities. The taxpayer actively participates in the rental real estate activities. What amount of the rental losses may be deducted in determining taxable income? A. $7,500 B. $17,500 C. $25,000 D. $32,500 A taxpayer has an AGI of $135,000 without taking into consideration $40,000 of losses from rental real estate activities. The taxpayer actively participates in the rental real estate activities. What amount of the rental losses may be deducted in determining taxable income? A. $7,500 B. $17,500 C. $25,000 D. $32,500