Kathy and Annise are a married couple who file jointly. In the current year, they have net ordinary income of $10,000 from a par

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Kathy and Annise are a married couple who file jointly. In the current year, they have net ordinary income of $10,000 from a par

tnership interest in which they do not materially participate. They also have a net loss of $30,000 from a rent house in which they actively participate. Their adjusted gross income (AGI) exclusive of these investments is $120,000. What is their AGI after taking into account these investments

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Scilla [3.2K] · Answer 1 · 2026-03-13T14:26:05+03:00

$100,000. Since Kathy and Annise are a married duo filing jointly, their adjusted gross income (AGI) is computed by subtracting a net loss from their initial AGI. Currently, AGI amounts to $120,000, with a rental loss of $30,000 and a partnership gain of $10,000. The revised AGI becomes Current AGI - Net Loss, or 120,000 – 20,000, leading to a revised AGI of $100,000. Calculating the net loss: Rental loss – partnership gain equals $30,000 - $10,000, resulting in a net loss of $20,000. Notably, Kathy and Annise may claim this $20,000 loss against other income, as they actively engage in rental activities.