Problem:
Anwar owns a rental home and is involved in maintaining it and approving renters. During the year he has a net loss of $17,300 from renting the home. His other sources of income during the year were a salary of $120,000 and $12,700 of long-term capital gains.
Question: How much of Anwar's $17,300 rental loss can he deduct currently if he has no sources of passive income?
Note: Please provide equation and explain comprehensively and give step by step solution.