R3 M6 - Partnership (Notes) Flashcards
1
Q
Partnership –> Form 1065 –> Schedule k-1 —> Form 1040
Partnership file Form 1065 for information al return.
- Each partner is liable only for taxes due on their distributive share of partnership income as reported on Schedule K-1, regardless of if there no distribution to them.
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2
Q
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3
Q
Organizational Expenditure and Start-up Costs
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4
Q
A partner’s tax basis in Partnership Interest
A partner’s basis in his or her partnership’s interest includes the partner’s capital account (money invested) plus the partner’s share of partnership debt.
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5
Q
A partner’s share of partnership debt includes
–> Debt for which the partner has personal liability (recourse debt)
–> Partner’s share of partnership debt secured by property (nonrecourse debt).
A
What increase and decrease basis
6
Q
How to calculate a Partner’s Tax Basis in Partnership Interest.
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7
Q
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8
Q
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9
Q
What is the different type of partnership?
What is the different type of debt?
A
- General partnership, limited partner or LLC member
- Nonrecourse –> (Secured). You can only go after the collateral
recourse debt –> personal guaranteed. You can go after more when the person default.
10
Q
A
