Question:
Five years ago Gerald invested $102,000 in a passive activity, his sole investment venture. On January 1, 2014, his amount at risk in the activity was $20,400. His shares of the income and losses were as follows:
|
Year
|
Income (Loss)
|
|
2014
|
($30,600)
|
|
2015
|
(20,400)
|
|
2016
|
40,400
|
|
Year
|
Loss
|
Allowed
|
Disallowed
|
|
2014
|
($30,600)
|
$
|
$
|
|
|
2015
|
($20,400)
|
|
|
|
|
Total
|
$
|
|
|
|
Considering both at-risk and passive loss rules, what is the amount of Gerald's suspended passive losses at the end of 2016? $
At the end of 2016, what is the amount of Gerald's adjusted basis in the activity? $