Ask Question
10 November, 05:48

Eagle Company, a partnership, had a short-term capital loss of $10,000 during the current year. Aaron, who owns 25% of Eagle, will report $2,500 of Eagle's short-term capital loss on his individual tax return.

+5
Answers (1)
  1. 10 November, 09:01
    0
    True

    Explanation:

    Partnerships are not taxed as individual entities, they work as pass through entities where the partners must report any gains or losses on their personal income filings.

    In this case, since Aaron owns 25% of Eagle Company, any loss or gain that Eagle company has will be passed to Aaron in the same percentage. Since Eagle had a $10,000 short term capital loss, $2,500 ($10,000 x 25%) of the loss will pass to Aaron.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Eagle Company, a partnership, had a short-term capital loss of $10,000 during the current year. Aaron, who owns 25% of Eagle, will report ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers