Taxation P, LP or LTC Flashcards
1
Q
Taxation overlook
A
not the taxpayer
Has filing obligations but no tax liability
2
Q
How are P and SH treated?
A
- Carrying on a Business
- Owning property/liabilities in relation to ownership interest
- INC/exp in proportion to ownership interests
3
Q
Taxation of disposals?
A
Look through treatment = Assessable income
Safe harbors apply
4
Q
safe harbor rules?
A
No income on disposal
New partner steps into shoes old partner
5
Q
De minus formula
A
Disposal payment + Previous payments -(Gross tax value - liabilities) - 50000 < 0
6
Q
What is the gross tax value
A
Total interest in Assets
Including revenue acc, depreciable property, and financial arrangement
7
Q
What is depreciable property?
A
Cost to partnership < $200,000
No Dep recovery
Does not apply to intangible assets
8
Q
Trading stock?
A
Turnover < $3,000,000
