Five years ago, Gerald invested $184 000 in a passive activity, his sole investment venture. On January 1, 2018, his amount at risk in the activity was $30,000. His shares of the income and losses were as follows:

Year	Income (Loss)
2018	($40,000)
2019	(30,000)
2020	50,000

Gerald holds no suspended at-risk or passive activity losses at the beginning of 2018.

If an answer is zero, enter "0".

A) If losses were limited only by the at-risk rules, how much can Gerald deduct in 2018 and 2019?

Year	Loss	Allowed	Suspended
2018	($40,000)	$	$
2019	($30,000)
Total			$

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 2018 and 2019?

Of the allowable at-risk loss for 2018, Gerald may deduct $______ in 2018 due to the passive loss rules and of the allowable at-risk loss from 2019, Gerald may deduct $______ in 2019 due to the passive loss rules.

C) Assuming Gerald has $50,000 income in 2020, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald's suspended losses at the end of 2020?

• Suspended under the at-risk rules: $_____
• Suspended under the passive activity loss rules: $_____

What is his taxable income for 2020? $______
At the end of 2020, what is the amount of Gerald's adjusted basis in the activity? $______