Travis Is a 30% Owner of 3 Rental Houses

Multiple Choice

Travis is a 30% owner of 3 rental houses. He spends 625 hours a year managing the properties. In addition, he owns a 20% interest in a real estate business to which he devotes 1,800 hours a year. The rental units generate a total loss of $22,000, and Travis' adjusted gross income in the current year, before considering the rental properties, is $120,000. How much of the loss can Travis deduct?

A) $- 0 -
B) $4,500
C) $6,600
D) $15,000
E) $22,000