Five years ago Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2018, his amount at risk in the activity was $30,000. His shares of the income and losses were as follows:

Year                     Income (Loss)
2018..............................($40,000)
2019................................(30,000)
2020..................................50,000

Gerald holds no suspended at-risk or passive activity losses at the beginning of 2018. How much can Gerald deduct in 2018 and 2019? What is his taxable income from the activity in 2020? Consider the at-risk rules as well as the passive activity loss rules.