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Travis is a 30% owner of 3 rental houses. He spends 625 hours a year managing the properties. In addition, he owns a 20% interest
Travis is a 30% owner of 3 rental houses. He spends 625 hours a year managing the properties. In addition, he owns a 20% interest in a real estate business to which he devotes 1,800 hours a year. The rental units generate a total loss of $22,000, and Travis' adjusted gross income in the current year, before considering the rental properties, is $120,000. How much of the loss can Travis deduct?
| a. | $- 0 - |
| b. | $4,500 |
| c. | $6,600 |
| d. | $15,000 |
| e. | $22,000 |
According to the test bank 2016 the answer is (c) Please explain. Thank you
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