Determine the income tax savings in the current year

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Assume the same facts as in the previous problem, except that they expect the business will have a $90,000 loss in the first year (instead of a $90,000 profit) and will not make any cash distributions. Determine the income tax savings in the current year for the business and for them personally if they form the business as a partnership, S corporation, or C corporation.

(Their marginal tax bracket will not change because of the business loss.)

Reference no: EM13517047

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