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2 October, 18:15

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?

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Answers (2)
  1. 2 October, 18:19
    0
    The amount that will be deduct will be more than $30,000

    Explanation:

    Given dа ta:

    year income

    2018 $40,000

    2019 $30,000

    2020 $50,000

    Amount of money deducted in 2018 and 2019 are calculated in below table

    year loss allowed disallowed working

    2018 $40,000 $30,000 $10,000 (40,000 - 30,000)

    2019 $30,000 $0 $30,000 (30,000 - 0)

    The amount that will be deduct will be more than $30,000
  2. 2 October, 18:36
    0
    total = $30000

    Explanation:

    given data

    Year Income (Loss)

    2018 = 40,000

    2019 = 30,000

    2020 = 50,000

    to find out

    How much can Gerald deduct in 2018 and 2019

    solution

    we get here table format that is express as

    year loss allowed disallowed working

    2018 40000 30000 10000 40000 - 30000

    2019 30000 0 30000 30000 - 0

    total $40000

    we can see that here amount will be more than $30000 only

    so deduction or set will be available
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