How much of Jacinto's passive loss is deductible for the current tax year?

To determine how much of Jacinto's passive loss is deductible for the current tax year, it is important to understand the nature of passive losses and the limits on their deductibility. Passive losses typically arise from investments in rental properties or other enterprises that do not involve active participation.

In general, passive losses can only offset passive income. If a taxpayer does not have sufficient passive income to absorb their passive losses, the unutilized losses may be carried forward to future tax years but cannot be deducted in the current year. Additionally, there are specific rules that govern the deductibility of passive losses depending on the taxpayer's income level and participation in the activity.

If Jacinto has no passive income for the current tax year, then he would not be able to deduct any of his passive losses. In this scenario, if the total passive loss exceeds any passive income, the loss is limited to $0 for the current tax year. Therefore, the conclusion that the deductible amount is $0 for Jacinto makes sense under these circumstances, where there is insufficient passive income to take advantage of the passive loss deduction in the year incurred.