LO$\mathrm{.}2,3,5$ Rita retired from public accounting after a long and successful career of $45$ years. As part of her retirement package, she continues to share in the profits and losses of the firm, albeit at a lower rate than when she was working full$-$time. Because Rita wants to stay busy during her retirement years, she has invested and works in a local hardware business, operated as a partnership. Unfortunately, the business has recently gone through a slump and has not been generating profits. Identify relevant tax issues for Rita.