Partner A has an investment account and for 2012 he has a realized and recognized capital gain of $40,000. Partner B does not have any investment accounts, and does not have any capital gains or losses for 2012.
The partnership K-1 passes through the following items:
- Partner A:Short term capital gain of $2,000
- Long term capital loss of ($25,000)
- Partner B:Short term capital gain of $2,000
- Long term capital loss of ($25,000)
How will Partner A and Partner B report these on their personal income tax returns?