This year Robert had the following income and losses from four passive activities:
Activity 1……………. $(20,000)
Activity 2……………... (10,000)
Activity 3………………. (5,000)
Activity 4………….…… 33,000
Activity 4 had $10,000 of passive losses that are carried over from a prior year. Robert also had wages of $110,000.
a. How much income or loss does Robert have from the four activities?
b. How are the suspended PALs allocated?
c. If Activity 1 were sold at an $18,000 gain, what would be the total income or loss from the four activities?