Grace acquired an activity four years ago. The loss from the activity is $50,000 in the current year (at-risk basis of $40,000 as of the beginning of the year). Without considering the loss from the activity, she has gross income of $140,000. If the activity is a convenience store and Grace is a material participant, what is the effect of the activity on her taxable income? rules. Grace may deduct $ of the $50,000 loss due to the at-risk is suspended. The available loss is not she was a material participant subject to the passive activity loss rules because . As a result, Grace's income for tax purposes is