a. This tax year, Shelly, who is an ER doctor, earned $200,000 of salary income and $50,000 of dividend income. She has no other income.

A few years ago, Shelly invested $25,000 in a real estate limited partnership called Rent-Too. Rent-Too owns rental properties operating at a substantial loss. Shelly invested in Rent-Too because she wanted to use her share of its generated losses to reduce her medical salary income.

For this tax year, Shelly received a Schedule K-1 from Rent-Too that shows her share of its annual operating loss is $75,000.

How much, if any, is Shellys gross income subject to tax? Please explain