Without considering the impact of the loss, John and Jena’s AGI is $175,000. What advice would you provide on the deductibility of the $60,000 loss for federal income tax purposes?
John Young is the lead partner in a local accounting firm whose practice consists of tax consulting and compliance. The firm also serves clients by providing write-up and payroll processing services. As his firm has grown, John has developed various ways to build its business prospects. John and his wife, Jena, created JJ
Because of the attractiveness of the services offered to its tenants, the building is fully leased. In the first year, Jena works full-time at the partnership, and John commits about 550 hours to its affairs. For the first year, the partnership incurs a tax loss of $60,000.
Without considering the impact of the loss, John and Jena’s AGI is $175,000. What advice would you provide on the deductibility of the $60,000 loss for federal income tax purposes?
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