June and John decide to form a business. They each plan to contribute $20,000 in exchange for a 50 percent interest in the business. They will then take out a bank loan for $30,000 to cover the balance of their working capital needs. John and June expect the business will have a $44,000 loss in the first year (instead of a $64,000 profit) and will not make any cash distributions. Excluding the business income, June, who files as head of household, has $475,000 of other ordinary taxable income. John is married and files a joint return; he and his wife have $130,000 of other ordinary taxable income. Determine the income tax savings in the current year for the business and for them personally if they form the business as a partnership, S corporation, or C corporation. (They both materially participate in the business and their marginal tax bracket will not change because of the business loss.)