Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in $1996.$ He also acquired a rental house in $2023,$ which he actively manages. During $2023,$ Walter's share of the partnership's losses was $$20,500,$ and his rental house generated $$45,500$ in losses. Walter's modified adjusted gross income before passive losses is $$123,000.$

If an amount is zero, enter $"0."$

Question Content Area

a$.$ Calculate the amount of Walter's allowable loss for rental house activities for $2023.$

b$.$ Calculate the amount of Walter's allowable loss for the partnership activities for $2023.$

What may be done with the unused losses, if anything?

The unused losses may be carried

to reduce

income in those years.