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?

Year Loss Allowed Disallowed

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?

?