Cobb, an unmarried individual, had an adjusted gross income of $130,000 in 20x1 before any IRA deduction, taxable social security benefits, or passive activity losses. Cobb incurred a loss of $40,000 in 20x1 from rental real estate in which he actively participated. What amount of loss attributable to this rental real estate can be used in 20x1 as an offset against income from nonpassive sources? (Show the computation process.)