Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a ($22,500) loss; however, Michelle has sufficient tax basis and at-risk amounts to absorb the loss. If Michelle has $130,000 of salary, $11,500 of long-term capital gains, $4,500 of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct?

Multiple Choice:

a) $0; losses from rental property are passive losses and can only be offset by passive income.

b) $20,500

c) $2,000

d) $22,500

e) None of the choices are correct.