Wayne and Wendy Are Equal Partners in ABC Windows

Wayne and Wendy are equal partners in ABC Windows.Wayne is a general partner and Wendy is a limited partner.Both partners have invested $20,000 in the company.ABC Windows experienced a loss of $50,000 this year.Which of the following statements regarding this loss is TRUE?

A) Wayne may claim a loss for tax purposes of $25,000 this year.
B) Wendy may claim a loss for tax purposes of $25,000 this year.
C) Wayne may claim a loss for tax purposes of $50,000 this year.
D) Wendy may claim a loss for tax purposes of $50,000 this year.

Correct Answer:

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