Carey, a single taxpayer, purchased a rental house in 2021, which he actively manages. During 2021, Carey had a loss of $14,000 from the rental house. If Carey's adjusted gross income for 2021 is $138,000 before the rental loss, what is the amount of Carey's allowable deduction for the rental activity for 2021? a.$0 b.$3,000 c.$6,000 d.$12,000 e.None of these choices are correct.

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter3: Tax Formula And Tax Determination : An Overview Of Property Transactions
Section: Chapter Questions
Problem 49P: During 2019, Inez (a single taxpayer) had the following transactions involving capital assets: a. If...
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Carey, a single taxpayer, purchased a rental house in 2021, which he actively manages. During 2021, Carey had a loss of $14,000 from the rental house. If Carey's adjusted gross income for 2021 is $138,000 before the rental loss, what is the amount of Carey's allowable deduction for the rental activity for 2021?
a.$0
b.$3,000
c.$6,000
d.$12,000
e.None of these choices are correct.
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