Answer:
The amount of Carey's allowable deduction for rental house activities for 2019 is $6,000. The right answer is a
Explanation:
In order to Calculate the amount of Carey's allowable deduction for rental house activities for 2019.
Individual taxpayers deduct rental property of $25,000 losses against other income, hence Loss deduction = $ 25,000 - (50% of the tax payer's modified total income in excess of $100,000)
To calculate the total income in excess of $ 100,000 we have to make the following calculation:
Total income in excess of $100,000 = $ 138,000 - $ 100,000 = $ 38,000.
Therefore, loss deduction = $ 25,000 - (50% of 38,000)
= $ 6,000
The amount of Carey's allowable deduction for rental house activities for 2019 is $6,000
