Five years ago Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2017, his amount al risk in the activity was $30,000. His shares of the income and losses were as follows:

Year                         Income (Loss)
2017..............................($40,000)
2018............................... (30,000)
2019................................. 50,000

Gerald holds no suspended at-risk or passive activity losses at die beginning of 2017. How much can Gerald deduct in 2017 and 2018? What is his taxable income from the activity in 2019? Consider the at-risk rules as well as the passive activity loss rules.