Chapter 10 - Partnership Operations

Question 1

Define Separately Stated Items

Answer 1

A Partnership item that is separate from income: income, gain, deduction, loss, or credit.

Question 2

What are the 16 Separately Stated Items?

Answer 2

Question 3

What are the 4 non Separately Stated Items?

Answer 3

1) OI or OL from business activity
2) Tax-exempt income and related expenses
3) NI or NL from other RENTAL ACTIVITIES
4) Dividends ( passed through to corporate partners ) that qualify for the dividends - received deduction

Question 4

Define Guaranteed Payments (GP)

Answer 4

payment to a partner for services rendered or capital used that is determined without regard to the income of the partnership.

Question 5

What are the 4 types of GP?

Answer 5

1) Services
2) Fixed amount stated ( e.g., annual salary)
3) Use of Capital
4) Stated Minimum Amount