Jamie Maslov and Teagan Phan Are Equal Partners in Masphan

question 7

Multiple Choice

Jamie Maslov and Teagan Phan are equal partners in Masphan Builders.Jamie is a general partner and Teagan is a limited partner.Each partner invested $20,000 in the company.Masphan experienced a loss of $50,000 this year.Which of the following statements regarding this loss is TRUE?

• A)Jamie may claim a loss for tax purposes of $25,000 this year.
• B)Teagan may claim a loss for tax purposes of $25,000 this year.
• C)Jamie may claim a loss for tax purposes of $50,000 this year.
• D)Teagan may claim a loss for tax purposes of $50,000 this year.

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Definitions:

Amortization

The process of gradually writing off the initial cost of an asset over its useful life or pay down the principal of a loan over time.