Mom and Pop own a home they rent out to students at the local university. Their AGI before considering any income or loss from the rental property is $110,000. Their loss from the rental property for the current year is $26,258.

If Mom and Pop have no other sources of passive income, how much of the passive loss from the rental home can they deduct currently? If none, answer 0. Please explain how you got each number in your solution and/or where the number comes from.