Orange Partnership is a calendar year partnership with the following current year information: $\begin{array}{llr}
\text { Operating loss } &\$(120,000)\
\text { Liabilities: } &\
\text { Note payable, City Bank } &20,000\
\text {Note payable, Jack Crow } &20,000
\end{array}$
On January 1, John James bought 50% general interest in Orange Partnership for $30,000. How much of the operating loss may John deduct on his Form 1040? Assume the excess business loss limitation does not apply.

Question

Orange Partnership is a calendar year partnership with the following current year information: $\begin{array}{llr}
  \text { Operating loss } &\$(120,000)\
 \text { Liabilities: } &\
 \text { Note payable, City Bank } &20,000\
 \text {Note payable, Jack Crow  } &20,000
\end{array}$
 On January 1, John James bought 50% general interest in Orange Partnership for $30,000. How much of the operating loss may John deduct on his Form 1040? Assume the excess business loss limitation does not apply.

Quizplus · Accepted Answer

The Answer of Orange Partnership is a calendar year partnership with the following current year information: $\begin{array}{llr}
  \text { Operating loss } &\$(120,000)\
 \text { Liabilities: } &\
 \text { Note payable, City Bank } &20,000\
 \text {Note payable, Jack Crow  } &20,000
\end{array}$
 On January 1, John James bought 50% general interest in Orange Partnership for $30,000. How much of the operating loss may John deduct on his Form 1040? Assume the excess business loss limitation does not apply.

Orange Partnership Is a Calendar Year Partnership with the Following