Paul, who is single, has $80,000 of salary, and $5,000 of passive income. He also has a $35,000 passive loss from a real estate rental activity in which he satisfies the requirements for ownership, basis, and "active participation". Of the $35,000 loss, how much is deductible in the current year? 1. $30,000 2. $25,000 3. $5,000 4. $15,000