Joseph, age 54 and single, earns a salary of 190,000 working for a manufacturing company. He is an avid saver and over the years has amassed an investment portfolio of 2 million. He expects the portfolio to appreciate in value at an average rate of 8
1) 60,000 is suspended under the passive activity loss rules.
2) 60,000 is suspended under the at-risk rules.
3) 10,000 is suspended under the at-risk rules, and 50,000 is suspended under the passive activity loss rules.
4) 50,000 is suspended under the at-risk rules, and 10,000 is suspended under the passive activity loss rules.