Jamie Maslov and Teagan Phan are equal partners in Masphan Builders.Jamie is a general partner and Teagan is a limited partner.Each partner invested $20,000 in the company.Masphan experienced a loss of $50,000 this year.Which of the following statements regarding this loss is TRUE?
A)Jamie may claim a loss for tax purposes of $25,000 this year.
B)Teagan may claim a loss for tax purposes of $25,000 this year.
C)Jamie may claim a loss for tax purposes of $50,000 this year.
D)Teagan may claim a loss for tax purposes of $50,000 this year.

Question

Quizplus · Accepted Answer

Jamie is a general partner and is personally liable for the debts and losses of the partnership. Therefore, Jamie may claim a loss for tax purposes of $25,000 this year.

Jamie Maslov and Teagan Phan Are Equal Partners in Masphan