Chapter 6: Partnerships Flashcards
1
Q
Changes to profit sharing agreements
A
Time apportion profits into old and new agreement
2
Q
Partner joins
A
Opening year rules
3
Q
Partner leaves
A
rules of trade ceasing
4
Q
Partner remains in business
A
Current year basis
5
Q
Partnership ceases trade
A
Opening and closing rules apply
6
Q
Trading losses
A
Each partner independently decides how they will relieve the loss
Partner joins a partnership - opening year loss relief would be available if loss made in the first 4 years
Terminal loss relief is available for partner which leaving the partnership
