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 current year will likely by $40,000, while his share of the partnership loss next year will probably by $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.