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Charles owns an apartment building and incurred a $35,000 rental loss. Charles has no other passive activities and is not a real estate professional but

  1. Charles owns an apartment building and incurred a $35,000 rental loss. Charles has no other passive activities and is not a real estate professional but does actively participates in renting the building. His wage income is $70,000 and his portfolio income is $10,000.

    What amount of rental loss is allowed?

    A

    $35,000
    B

    $25,000
    C

    $10,000
    D

    $0

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