Question

Nora is the owner of an apartment complex. She actively participates in the management of the building. During the current year, it generates a taxable loss of $28,000. Nora's other sources of income are salary of $55,000 and interest of $20,000. What is Nora's allowable loss from the apartment?

Answer 1

Allowable loss = $28000

Step-by-step explanation:

If the taxable loss in a year is way less than the total income plus interests, the allowable loss in a year is equal to the taxable loss.

Hence, allowable loss = taxable loss = $28000

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