Five years ago Gerald invested $$130,000$ in a passive activity, his sole investment venture. On January $1,2021,$ his amount at risk in the activity was $$32,500.$ His shares of the income and losses were as follows:

Year Income $($Loss$)$

$2021($$$36,400)$

$2022(48,100)$

$202357,850$

Gerald holds no suspended at$-$risk or passive activity losses at the beginning of $2021.$

If an answer is zero, enter $"0".$

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a$.$ If losses were limited only by the at$-$risk rules, how much can Gerald deduct in $2021$ and $2022?$

Year Loss Allowed Suspended

$2021($$$36,400)$ $fill in the blank c$886$eef$7$ef$91$ff$1\_1$ $fill in the blank c$886$eef$7$ef$91$ff$1\_2$

$2022($$$48,100)$ fill in the blank c$886$eef$7$ef$91$ff$1\_3$ fill in the blank c$886$eef$7$ef$91$ff$1\_4$

Total $fill in the blank c$886$eef$7$ef$91$ff$1\_5$

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b$.$ Refer to the information in part $($a$)$ above. If losses were limited by the at$-$risk and the passive activity loss rules, how much would Gerald be able to deduct in $2021$ and $2022?$

Of the allowable at$-$risk loss for $2021,$ Gerald may deduct $fill in the blank efa$91700207905$a$\_1$ in $2021$ due to the passive loss rules and of the allowable at$-$risk loss from $2022,$ Gerald may deduct $fill in the blank efa$91700207905$a$\_2$ in $2022$ due to the passive loss rules.

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c$.$ Assuming Gerald has $$57,850$ income in $2023,($and considering both at$-$risk and passive activity loss rules$),$ what is the amount of Gerald's suspended losses at the end of $2023?$

Suspended under the at$-$risk rules: $fill in the blank $5$a$01$ac$0$b$006106$a$\_1$

Suspended under the passive activity loss rules: $fill in the blank $5$a$01$ac$0$b$006106$a$\_2$

What is his taxable income for $2023?$ $fill in the blank $5$a$01$ac$0$b$006106$a$\_3$

At the end of $2023,$ what is the amount of Gerald's adjusted basis in the activity? $fill in the blank $5$a$01$ac$0$b$006106$a$\_4$

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