Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1993. He also acquired a rental house in 2020, which he actively manages. During 2020, Walter's share of the partnership's losses was $17,500, and his rental house generated $39,500 in losses. Walter's modified adjusted gross income before passive losses is $138,000.

If an amount is zero, enter "0".

a. Calculate the amount of Walter's allowable loss for rental house activities for 2020. $________

b. Calculate the amount of Walter's allowable loss for the partnership activities for 2020. $________

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

The unused losses may be carried (back to previous, forward to future, or back to previous and forward to future) tax years indefinitely, to reduce (active, passive, portfolio, or any type of) income in those years.