What is the correct order in which the limitations on potential losses must be applied for $2022?$

First, basis; second, at$-$risk; third, passive activity; fourth, excess business loss.

First, at$-$risk; second, basis; third, excess business loss; fourth, passive activity.

First, passive activity; second, excess business loss; third, basis; fourth, at$-$risk.

First, basis; second, passive activity; third, excess business loss; fourth, at$-$risk.