Tyler, whose filing status is single, owns a retail center that showed a net loss in 2019 of $42,000. There had been no prior losses from rental properties and he was an active participant in the current rental property. His modified adjusted gross income was $40,000. How much of this loss can he subtract on his tax return and in what section of Form 8582 would this be calculated? $0; Part I.

$25,000; Part I.

$25,000; Part II.

$40,000; Part III.