The maximum special allowance is:
$25,000 for single individuals and married individuals filing a joint return for the tax year,
$12,500 for married individuals who file separate returns for the tax year and lived apart from their spouses at all times during the tax year, and
$25,000 for a qualifying estate reduced by the special allowance for which the surviving spouse qualified.
If your modified adjusted gross income is more than $100,000 (more than $50,000 if married filing separately), your special allowance is limited to 50% of the difference between $150,000 ($75,000 if married filing separately) and your modified adjusted gross income.
Generally, if your modified adjusted gross income is $150,000 or more ($75,000 or more if you are married filing separately), there is no special allowance.
To determine a loss - qualified rental expenses might be deducted. The income which was never received in not a qualified deductible expense.
The client may deduct the depreciation of the rental property, taxes, mortgage interest, repair and utilities expenses, tax preparation fees, insurance, etc