Nancy Is the Owner of an Apartment Complex

Multiple Choice

Nancy 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 $27,000. Nancy's other sources of income are salary of $52,000 and interest of $21,000. What is Nancy's allowable loss from the apartment?

A) $- 0 -
B) $18,000
C) $25,000
D) $27,000
E) None of the above.