Eagle Company, a partnership, had a short-term capital loss of $10,000 during the current year. Aaron, who owns
25% of Eagle, will report $2,500 of Eagle's short-term capital loss on his individual tax return.

Question

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As a partner in a partnership, Aaron is required to report his distributive share of the partnership's income, gains, losses, deductions, and credits on his individual tax return. Since he owns 25% of Eagle Company, he would report 25% of the short-term capital loss, which amounts to $2,500.

Eagle Company, a Partnership, Had a Short-Term Capital Loss of $10,000