Julie, who files as a single taxpayer, has AGI of $100,000 in 2021. She incurred the following expenses during the year:

State and local income taxes	5,800
State sales tax	3,200
Real estate taxes	4,800
Home mortgage interest	12,000
Roth IRA contribution	2,000
Traditional IRA contribution	2,000
Medical expenses (before 7.5% floor)	3,600

Julie's allowable itemized deductions are:

$18,000

$21,800

$23,800

$22,000

$20,000

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Bill invests $100,000 in an oil partnership. He has taxable income (loss) and investments (withdrawals) as follow:

Year 1: Income $10,000, withdrawal ($5,000)

Year 2: Loss ($2,000) investment $5,000

What is Bill's at-risk amount at the end of year 2?

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Betty sells an interest in a passive activity for $100,000. Her adjusted basis is $80,000 and losses from prior years that were not deductible due to the passive activity loss restrictions total $40,000.

The tax effects of the sale are:

Gain $20,000

Gain $40,000

Loss $20,000

Loss $40,000

No gain, No loss.