Question

Individuals with modified AGI of $100,000 can deduct against active or portfolio income losses of up to $25,000 from real estate rental activities in which they actively participate.

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Answer 1

Individuals with modified AGI of $100,000 can deduct up to $25,000 from real estate rental activities in which they actively participate.

Step-by-step explanation:

Individuals with a modified AGI (Adjusted Gross Income) of $100,000 can deduct up to $25,000 from real estate rental activities in which they actively participate. This deduction can be claimed against either active income or portfolio income losses. The deductible amount is subject to certain limitations based on the individual's income level.

For example, if an individual's modified AGI is $100,000 and they have losses of $30,000 from real estate rental activities, they can only deduct up to $25,000. The remaining $5,000 loss cannot be deducted in the current tax year but can be carried forward to future years.