2024 – Susan formed Dental LLC and received 80 interest in the company Two other dentist Tom and

Susan formed Dental LLC, and received 80% interest in the company. Two other dentist Tom and Jim received a 10% interest in the company. Susan provided all necessary capital, while Tom and Jim provided experience and commitment to work for Dental LLC. Taxed as a partnership for federal income tax purposes. 

Susan worked about 300 hour for the company, and received a guaranteed payment of $100,000. Tom and Jim each worked about 600 hours and each received a guaranteed payment of $150,000. Company generated a net loss of $530,000.

 

Required: how should Susan, Tom and Jim treat their loss based on the tax codes?