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Today, 21:16

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.

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  1. Today, 23:13
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    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.
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