Sam, a resident of Pennsylvania, owns 331/3 percent of a duplex in the nearby college town of Shippensburg with two other friends. The duplex is rented to students who attend the Shippensburg. Sam's responsibility is to approve new tenants each year and take care of any maintenance issues. During the year, the rental property generated a $40,000 loss, which was split equally among Sam and his three friends. Assuming Sam's only source of income was $125,000 of salary, how much of the rental loss can Sam deduct this year and what amount must be carried forward? Show all calculations