b. Refer to the information in part (a) above. If losses were limited by the at-risk and the passive activity loss rules, how much would Gerald be able to deduct in 2019 and 2020? Of the allowable at-risk loss for 2019, Gerald may deduct $ in 2019 due to the passive loss rules and of the allowable at- risk loss from 2020, Gerald may deduct $ in 2020 due to the passive loss rules. c. Assuming Gerald has $46,000 income in 2021, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald's suspended losses at the end of 2021? • Suspended under the at-risk rules: $ Suspended under the passive activity loss rules: $ What is his taxable income for 2021? $ At the end of 2021, what is the amount of Gerald's adjusted basis in the activity? $

b. Refer to the information in part (a) above. If losses were limited by the at-risk and the passive activity loss rules, how much would Gerald be able to deduct in 2019 and 2020? Of the allowable at-risk loss for 2019, Gerald may deduct $ in 2019 due to the passive loss rules and of the allowable at- risk loss from 2020, Gerald may deduct $ in 2020 due to the passive loss rules. c. Assuming Gerald has $46,000 income in 2021, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald's suspended losses at the end of 2021? • Suspended under the at-risk rules: $ Suspended under the passive activity loss rules: $ What is his taxable income for 2021? $ At the end of 2021, what is the amount of Gerald's adjusted basis in the activity? $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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46
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