During 2019, Hugh Hughes reported the following income and loss:

Activity X

($50,000)

Activity Y

$20,000

Both Activity X and Activity Y are passive to Mr. Hughes. Hugh purchased Activity X in 1988 and Activity Y in 2013. How much of the net loss may Mr. Hughes deduct in 2019?

Question 2 options:

1)

$30,000

2)

$0

3)

$3,000

4)

$50,000