I have some questions relating to a tax return project for a general partnership.

1) The partnership reported a net short-term loss of ($24,000), and a long-term gain of $18,000. Since it is a flow-through entity, would I be able to deduct the net loss of ($6,000) against ordinary income on the Schedule K? Are there any limitations for reporting a net capital loss for a general partnership?

2) The Partnership also reported the following expenses for the year. I assume these would be reported on line 20 (other deductions) on the Form 1065.

Utilities $55,079

Automobile expense $12,085

Office expense $4,420

Advertising $85,000

Accounting and legal expense $32,500

Charitable contributions $14,700

Travel Expense: $4,700 travel plus $3,250 meals (50%)