Molly owns a rental real estate property that incurred a loss during the year of $40,000. Molly is not a real property trade or business professional. She provides all of the services including approving new tenants, arranging for all maintenance and paying utilities and real estate taxes. Molly's AGI not counting the rental loss is $110,000. How much rental loss can Molly claim?

$ 70,000.

$ 85,000.

$ 90,000.

$ 110,000.