At the beginning of this year, Thomas and Claire were equal partners in a partnership that uses the calendar year as its tax year. On August 1, this year, Randy and Mike each contributed $50,000 cash for a 1/4 interest in the partnership. The interests of both Thomas and Claire drop to one- fourth. The partnership reports a $30,000 ordinary loss for the current tax year ending December 31. (Use the elective proration method with a monthly convention.)
What is the amount of loss allocated to each partner?

Question

Quizplus · Accepted Answer

The Answer of At the beginning of this year, Thomas and Claire were equal partners in a partnership that uses the calendar year as its tax year. On August 1, this year, Randy and Mike each contributed $50,000 cash for a 1/4 interest in the partnership. The interests of both Thomas and Claire drop to one- fourth. The partnership reports a $30,000 ordinary loss for the current tax year ending December 31. (Use the elective proration method with a monthly convention.)
What is the amount of loss allocated to each partner?

At the Beginning of This Year, Thomas and Claire Were