1. Paula, a single high-school teacher, rents out the upstairs apartment in her two-family house and incurs a $12,000 loss. Her AGI is $142,000. She has no passive income. How much of her rental loss can she deduct on her tax return under the passive loss limitation rules?

   		Zero.
   		$4,000.
   		$11,000.
   		$12,000.