Nelson Is the Owner of an Apartment Complex

Multiple Choice

Nelson is the owner of an apartment complex. He actively participates in the management of the building. During the current year, it generates a taxable loss of $33,000. Nelson's other sources of income are salary of $148,000 and interest of $12,000. What is Nelson's allowable loss from the apartment?

A) $- 0 -
B) $ 1,000
C) $12,000
D) $25,000
E) $33,000.