Funky Chicken is a calendar year general partnership with the following current year information: $\begin{array}{lr}
\text {Operating loss }&\$(300,000)\\text { Liabilities: }\
\text {Note payable, Big Bank }&30,000\
\text {Note payable, June Cross }&20,000\
\end{array}$
On January 1 June Cross bought 60% of Funky Chicken for $45,000. How much of the operating loss may Cross deduct currently? Assume the excess business loss limitation does not apply.

Question

Funky Chicken is a calendar year general partnership with the following current year information: $\begin{array}{lr}
\text {Operating loss }&\$(300,000)\\text { Liabilities: }\
\text {Note payable, Big Bank }&30,000\
\text {Note payable, June Cross }&20,000\
\end{array}$
 On January 1 June Cross bought 60% of Funky Chicken for $45,000. How much of the operating loss may Cross deduct currently? Assume the excess business loss limitation does not apply.

Quizplus · Accepted Answer

The Answer of Funky Chicken is a calendar year general partnership with the following current year information: $\begin{array}{lr}
\text {Operating loss }&\$(300,000)\\text { Liabilities: }\
\text {Note payable, Big Bank }&30,000\
\text {Note payable, June Cross }&20,000\
\end{array}$
 On January 1 June Cross bought 60% of Funky Chicken for $45,000. How much of the operating loss may Cross deduct currently? Assume the excess business loss limitation does not apply.

Funky Chicken Is a Calendar Year General Partnership with the Following