A) Jackson invested $198,000 in a passive activity five years ago. On January 1, 2020, his at-risk amount in the activity was $47,000. His share of the income and losses in the activity were $54,600 loss in 2020, $21,400 loss in 2021, and $83,000 gain in 2022.

Required:

1. How much can Jackson deduct in 2020 and 2021?
2. What is his taxable income from the activity in 2022? Keep in mind the at-risk rules as well as the passive loss rules.

B) In 2020, Jerry acquired an interest in a partnership in which he is not a material participant. The partnership was profitable until 2021. Jerrys basis in the partnership interest at the beginning of 2021 was $65,000. In 2021, his share of the partnership loss was $49,250. In 2022, his share of the partnership income was $25,000.

Required:

How much can Jerry deduct in 2021 and 2022?

Note: Leave no cells blank - be certain to enter "0" wherever required.