Five years ago Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2013, his amount at risk in the activity was $30,000. His shares of the income and losses were as follows:

2013: (40,000)

2014: (30,000)

2015: 50,000

A. If losses were limited only by the at-risk rules, how much can Gerald deduct in 2013 and 2014?

YearLossAllowedDisallowed

2013 40,000??

2014 30,000??

Total?

B. Refer to the information in part (a) above. Assuming Gerad has 50,000 income in 2015, what is his taxable income from the activity in 2015 under at-risk rules?

?

C. If losses were limited by the at-risk and passive loss rules, how much would Gerald be able to deduct in 2013 and 2014?

2013: ?

2014: ?

D. Considering both at-risk and passive loss rules, what is the amount of Gerald's suspended passive losses at the end of 2015?

?

at the end of 2015, what is the amount of Gerald's adjusted basis in the activity?

?