Question - In 2012 Annie invests $55,000 in an activity for which she is not a material participant. Annie has no other sources of income. Annie's losses from the activity are as follows:
Income/(Loss)
2012 ($45,000)
2013 ($20,000)
2014 $30,000
Calculate Annie's deductible loss, basis, and any losses suspended under the at-risk and/or passive activity loss rules each year.