What amount of the losses can currently deduct

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Connor is a real estate professional who derives most of his income from his real estate management company. More than half of the services he performs during the year are in real property trades or businesses. Connor's AGI is $175,000 and he performs 650 hours of services in real property trades or businesses. Conner has a $35,000 loss from an operation that manages commercial apartment buildings in 2020. Conner also materially participates in a business where he rents camping equipment for an average period of seven days. His loss from this activity is $15,000.

Problem A) What amount of these losses can he currently deduct?

Problem B) If Connor is interested in maximizing his passive activity deductions, what tax planning suggestions would you have for him?

Reference no: EM132812575

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