In 2014, Lindsay's at-risk amount was $50,000 at the beginning of the year. Lindsay's shares of income and losses from the activity were as follows (ignore passive loss rules):YearGain (Loss)2014 $(60,000) 2015 $(40,000) 2016 $(20,000) 2017 $40,000 2018 $40,000 In 2018, what amount of income or loss will Lindsay report from this activity?
What will be an ideal response?
The following amounts would be allowed under the at-risk rules.
| At-Risk | Loss Carryover |
| Beginning At-Risk | $50,000 | ? | ? |
| 2014 Loss Allowed | (50,000) | $10,000 | disallowed |
| Ending At-Risk | $0 | ? | ? |
| 2015 Loss Allowed | $0 | $40,000 | disallowed |
| Ending At-Risk | $0 | $50,000 | carryover |
| 2016 Loss Allowed | $0 | $20,000 | disallowed |
| Ending At-Risk | $0 | $70,000 | carryover |
| 2017 Increase in At-Risk | $40,000 | ? | ? |
| 2017 Loss Allowed | $(40,000) | $40,000 | allowed |
| Ending At-Risk | $0 | $30,000 | carryover |
| 2018 Increase in At-Risk | $40,000 | ? | ? |
| 2018 Loss Allowed | $(30,000) | $30,000 | allowed |
| Ending At-Risk | $10,000 | $0 | carryover |
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