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Scenario $3$: At$-$Risk Limitations for Losses

Emily invests $$20,000$ in a film production partnership $($passive activity$).$

The partnership generates a loss of $$35,000.$ Emily's share is $$18,000.$

Wages: $$62,000$

Interest and Dividend Income: $$2,000$

Itemized Deductions: $$18,000$

Allowable deduction for self$-$employment tax: None

Calculate:

The amount of Emily's loss that is potentially deductible under the at$-$risk rules.

AGI, Taxable Income, and Total Tax Liability