Real Estate Activities (LO. 7) Ivan and Olga own a duplex. They collect the rents and make repairs to the property when necessary. That is, they are active participants in the rental property. During the current year, the duplex has gross rents of $16,000 and total allowable deductions of $31,000. Refer to Figure 7-3 to answer the following questions. Complete the statements below which outline their allowable loss based on the adjusted gross income provided in each of the following. a. $87,000: Ivan and Olga are allowed to deducts - 15,000 of rental real estate loss. b. $122,000: Ivan and Olga must adjust their loss when adjusted gross income exceeds $ 100,000. Their allowable loss is capped at $ 14,000 c. $155,000: Ivan and Olga's adjusted gross income exceeds the active participation exception 11,000 X d. $139,000: Ivan and Olga must reduce their allowed loss by $.50 for every $1 of AGI over $100,000 V They have an allowable loss deduction of 5,500 cap of Feedback Check My World If a taxpayer actively participates in rental real estate, they can deduct some losses