Orange, Inc. is a calendar year partnership with the following current year information: $$\begin{array} { l c }
\text { Operating loss } & \$ ( 120,000 ) \
\text { Liabilities: } & \
\quad \text { Note payable, City Bank } & 20,000 \
\text { Note payable, Jake Crow } & \mathbf { 2 0 , 0 0 0 }
\end{array}$$ On January 1, John James bought 50% general interest in Orange, Inc. for $30,000. How much of the operating loss may John deduct on his Form 1040?

Question

Orange, Inc. is a calendar year partnership with the following current year information: $$\begin{array} { l c } 
\text { Operating loss } & \$ ( 120,000 ) \
\text { Liabilities: } & \
\quad \text { Note payable, City Bank } & 20,000 \
\text { Note payable, Jake Crow } & \mathbf { 2 0 , 0 0 0 }
\end{array}$$ On January 1, John James bought 50% general interest in Orange, Inc. for $30,000. How much of the operating loss may John deduct on his Form 1040?

Quizplus · Accepted Answer

The Answer of Orange, Inc. is a calendar year partnership with the following current year information: $$\begin{array} { l c } 
\text { Operating loss } & \$ ( 120,000 ) \
\text { Liabilities: } & \
\quad \text { Note payable, City Bank } & 20,000 \
\text { Note payable, Jake Crow } & \mathbf { 2 0 , 0 0 0 }
\end{array}$$ On January 1, John James bought 50% general interest in Orange, Inc. for $30,000. How much of the operating loss may John deduct on his Form 1040?

Orange, Inc On January 1, John James Bought 50% General Interest in Current