Five years ago Gerald invested $122,000 in a passive activity, his sole investment venture. On January...

 

 

 

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Five years ago Gerald invested $122,000 in a passive activity, his sole investment venture. On January 1, 2016, his amount at risk in the activity was $24,400. His shares of the income and losses were as follows: Year 2016 2017 2018 Income (Loss) ($36,600) (24,400) 44,400 Gerald holds no suspended at-risk or passive activity losses at the beginning of 2016. If an answer is zero, enter "0". a. If losses were limited only by the at-risk rules, how much can Gerald deduct in 2016 and 2017? Year Loss Allowed 2016 ($36,600) $ 2017 ($24,400) Total 24,400 Suspended 12,200 24,400 36,600 ✔ b. Refer to the information in part (a) above. Assuming Gerald has $44,400 income in 2018, what is his taxable income from the activity in 2018 under at-risk rules? ox c. If losses were limited by the at-risk and passive activity loss rules, how much would Gerald be able to deduct in 2016 and 2017? 2016: $ 2017: $ 0 ✓ 0 ✓ d. Assuming Gerald has $44,400 income in 2018, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald's suspended passive activity losses at the end of 2018? $ At the end of 2018, what is the amount of Gerald's adjusted basis in the activity? $ Five years ago Gerald invested $122,000 in a passive activity, his sole investment venture. On January 1, 2016, his amount at risk in the activity was $24,400. His shares of the income and losses were as follows: Year 2016 2017 2018 Income (Loss) ($36,600) (24,400) 44,400 Gerald holds no suspended at-risk or passive activity losses at the beginning of 2016. If an answer is zero, enter "0". a. If losses were limited only by the at-risk rules, how much can Gerald deduct in 2016 and 2017? Year Loss Allowed 2016 ($36,600) $ 2017 ($24,400) Total 24,400 Suspended 12,200 24,400 36,600 ✔ b. Refer to the information in part (a) above. Assuming Gerald has $44,400 income in 2018, what is his taxable income from the activity in 2018 under at-risk rules? ox c. If losses were limited by the at-risk and passive activity loss rules, how much would Gerald be able to deduct in 2016 and 2017? 2016: $ 2017: $ 0 ✓ 0 ✓ d. Assuming Gerald has $44,400 income in 2018, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald's suspended passive activity losses at the end of 2018? $ At the end of 2018, what is the amount of Gerald's adjusted basis in the activity? $

Answer rating: 100% (QA)

b Taxable in come 4440036600 7800 d Passive activity loss 20000 4440... View the full answer