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Peter acquired a passive activity several years ago. Until 2019, the activity was profitable, and Peter's at-risk amount at the beginning of 2019 was $72,000.
| Peter acquired a passive activity several years ago. Until 2019, the activity was profitable, and Peter's at-risk amount at the beginning of 2019 was $72,000. The activity produced losses and income as indicated below | |||||
| Beginning at-risk amount | $ 72,000 | ||||
| Year | Passive Income (Loss) | ||||
| 2019 | $ (22,000) | ||||
| 2020 | $ (13,000) | ||||
| 2021 | $ 28,000 | ||||
| REQUIRED | Show your work below the questions. | ||||
| 1. Track the at-risk amount through the three years, showing each year's beginning balance, each year's activity and each year's ending balance. | |||||
| 2. How much loss "survives" the at risk limitation each year and is passed on to the passive activity loss limitation analysis? | |||||
| 3. How much loss is suspended at the end of each year under the at-risk rules? | |||||
| 4. How much loss is suspended at the end of each year under the passive activity loss rules? | |||||
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