In 2012 Tony invests $35,000 in an activity for which he is not a material participant. Tony has no other sources of income. Tony's losses from the activity are as follows:
Income/(Loss)
2012 ($25,000)
2013 ($15,000)
2014 $50,000
Calculate Tony’s deductible loss, basis, and any losses suspended under the at-risk and/or passive activity loss rules each year.