Question 16 of 20. Melissa sold her rental home to an unrelated party. She had prior-year unallowed losses of $12,000. Her current-year loss is $2,500. She has taxable income on her Form W-2 of $115,000 and has income of $5,000 from a second rental property she owns. What will happen to Melissa's prior-year losses? O She will lose them since she sold the rental home. She can use them against her current-year passive income, but the remaining loss will be lost. She can deduct the losses in the current year against the income from her other rental home and carry the rest forward. She can deduct the prior-year unallowed losses from any of her passive or nonpassive income this year. Mark for follow up