In the current year, Bill Parker (54 Oak Drive, St Paul, MN 55164) is considering making an investment of $60,000 in Best Choice Partnership The prospectus provided by Bills broker indicates that the partnership investment is not a passive activity and that Bills share of the entitys loss in the cu...

Smith Raabe Maloney and Young CPAs 5191 Natorp Boulevard Mason OH 45040 November 4 2014 Mr Bill Park ...

In the current year, Bill Parker (54 Oak Drive, St. Paul, MN 55164) is considering making an

Question:

In the current year, Bill Parker (54 Oak Drive, St. Paul, MN 55164) is considering making an investment of $60,000 in Best Choice The prospectus provided by Bill’s indicates that the investment is not a passive activity and that Bill’s share of the entity’s loss in the current year will likely be $40,000, while his share of the loss next year will probably be $25,000. Write a letter to Bill in which you indicate how the losses would be treated for tax purposes in the current year and the following year.
Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...