Five years ago Gerald invested $190,000 in a passive activity, his sole investment venture. On January 1, 2014, his amount at risk in the activity was $38,000. His shares of the income and losses were as follows:

2014: (57,000)

2015: (38,000)

2016: 58,000

A. If losses were limited only by the at-risk rules, how much can Gerald deduct in 2014 and 2015?

Year Loss Allowed Disallowed

2014 (57,000) ? ?

2015 (38,000) ? ?

Total ?

B. Refer to the information in part (a) above. Assuming Gerad has 58,000 income in 2016, what is his taxable income from the activity in 2016 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 2014 and 2015?

2014: ?

2015: ?

D. Considering both at-risk and passive loss rules, what is the amount of Gerald's suspended passive losses at the end of 2016?

?

at the end of 2016, what is the amount of Gerald's adjusted basis in the activity?

?