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norm is a real estate professional with a real estate trade or business as defined in the tax law he has $80,000 of business income

norm is a real estate professional with a real estate trade or business as defined in the tax law he has $80,000 of business income and $40,000 in losses from actively managed real estate rentals how much of the $40,000 in losses is he allowed to claim on his tax return

a. $40,000

b. $25,000

c. $20,000

d. None

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