R3- M6- Partnership Overview Flashcards
1 Partnership Tax Returns 2 Partner's Share of Income, Credits and Deductions: Part 1 3 Partner's Share of Income, Credits and Deductions: Part 2 4 Partner's Tax Basis in Partnership Interest: Part 1 5 Partner's Tax Basis in Partnership Interest: Part 2 6 Tax Classification of Limited Liability Companies
QBI are both Self employment income from Sole proprietorship or General partnership (If Individual TP is the GP) or Single member LLC and Flow through Ordinary business income from Flow through entities S Corp, Partnership and LLC
Guaranteed payments are not QBI although they go to schedule E passive income
Sole proprietorship, Single member LLC income go to Schedule C - LITTLE COMPANY Self employment income
Flow thorugh income from S corp, partnership, LLC to Schedule E Passive income
Basis in Partnership Interest Formula
= Ending Capital Account+ % Partnership Liabilities
LLC Limited liability Company
Members are separate from the legal entity
they have limited liability- all of them
For federal tax purpose, treated as either:
1. C Corporation
2. Partnership- automatic if at least 2 members unless they elect as C Corp on F8832
3. Sole Proprietorship- SIngle member LLC (DISREGARDED entity)
