Rachel Sanchez is a limited partner in HN Partnership, which operates a souvenir shop, and a member

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Rachel Sanchez is a limited partner in HN Partnership, which operates a souvenir shop, and a member in Jams-n-Jellies LLC, which makes specialty food items and sells them at retail. Rachel has no involvement in the partnership business, but she handles all the advertising for the LLC. The LLC compensates her at the rate of $45 per hour, and she billed the LLC for 592 hours of work during 2017. Rachel's only other income-generating activity is her part-time employment as a librarian.
Rachel's 2017 Schedule K-1 from HN Partnership reported that her share of ordinary business loss was $3,810. Her 2017 Schedule K-1 from Jams-n-Jellies LLC reported that her share of ordinary business income was $15,082. How much of her share of the partnership loss can Rachel deduct on her 2017 Form 1040?
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...
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Principles Of Taxation For Business And Investment Planning 2018

ISBN: 9781259713729

21st Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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