Question

10 percent partner in a partnership that incurred a $4 million business loss this year. Jahlil has no other business activities. How much of Jahlil's partnership loss can he deduct this year if he is single? What if he is married filing jointly?

Answer 1

Answer:

$250,000 and $500,000

Explanation:

According to the tax laws there is annual limit on Loss deductions  relating the amount of business loss that can be deducted in a year.

The law states that single or individual tax payers can deduct nothing more than $250,000 while married taxpayers who are filing jointly can deduct up to $500,000 per year of their business losses.

Therefore, if Jahlil is single the amount of partnership loss he can deduct is $250,000 but if he is married filing jointly, he can deduct $500,000