In the current year, Bill Parker is considering making an investment of $$60,000$ in Best Choice Partnership. If Bill makes the investment, he will participate in the business operated by Best Choice $($and will meet one of the material participation tests$).$ As a result, it will not be a passive activity. Bill's share of the entity's loss in the current year will likely be $$40,000,$ while his share of the partnership loss next year will probably be $$25,000.$

Complete the letter to Bill in which you indicate how the losses would be treated for tax purposes in the current year and the following year.