# Personal income tax | Accounting homework help

b. Determine if Pat’s AMT exemption will be limited.

His tentative exemption of \$[removed] is phased out  at a rate of 25 cents on the dollar when AMTI exceeds \$[removed].

If required, round amounts to the nearest dollar.

 Computation of AMT Base and Tax AMTI \$[removed] AMT exemption [removed] AMT base \$[removed] Tentative AMT \$[removed]

Problem 11-52 (LO. 2, 3, 7)

Five years ago Gerald invested \$150,000 in a passive activity, his sole investment venture. On January 1, 2015, his amount at risk in the activity was \$30,000. His shares of the income and losses were as follows:

 Year Income (Loss) 2015 (\$40,000) 2016 (30,000) 2017 50,000

Gerald holds no suspended at-risk or passive activity losses at the beginning of 2015.

If an answer is zero, enter “0”.

d.  Assuming Gerald has \$50,000 income in 2017, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald’s suspended passive activity losses at the end of 2017 under the at-risk rules and under the passive activity loss rules?
Under the at-risk rules: \$[removed]
Under the passive activity loss rules: \$[removed]