Five year ago Gerald inveted $150,000 in a passive activity, his sole investment venture. On January 1, 2014 his amount at risk in the activity was $30,000. His shares of the income and losses were as follows:

Year 2014 (40,000)

Year 2015 (30,000)

Year 2016 50,000

How much Can Gerald deduct in 2014 and 2015? What i his taxable income from the activity in 2016? Consider the at-risk rules as well as the passive loss rules.