Five years ago Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2020, his amount at risk in the activity was $30,000. His shares of the income and losses were as follows:

Gerald holds no suspended at-risk or passive activity losses at the beginning of 2020. How much can Gerald deduct in 2020 and 2021? What is his taxable income from the activity in 2022? Consider the at-risk rules as well as the passive activity loss rules. 

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Year 2020 2021 2022 Income (Loss) ($40,000) (30,000) 50,000