$7-31$

$41.$ L$0\mathrm{.}6$ Timothy Gates and Prada Singh decide to form a new company, TGPS LLC $($a multimember LLC that will report its operations as a partnership$).$ Timothy is married, and Prada is single. Each contributes $$400,000$ of capital to begin the business, and both materially participate in the business. In $2024,$ TGPS reports a net loss of $$640,000.$ What are the implications of this loss for Timothy and Prada?