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    1065

    Partnership has 2 partners 50/50 but one of them is profit/loss only (limited partner).

    Income after GP is $6,000, so each capital acct. would increase by $3,000.

    But income includes 179 deduction of $1,000 which will be allocated to working partner, none to limited partner. I am fine as far as basis calculation goes but confused about the capital accounts. I would allocate 179 deduction fully to partner who receives benefit on
    K-1 but my software program reduces capital accounts for both equally.

    Can anyone confirm that I am thinking straight (or set me straight)? Thanks.

    #2
    Software...

    My software allows me to allocate each item at its source. Check for allocation points within your software.
    Last edited by BOB W; 01-26-2006, 07:32 PM.
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

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      #3
      That's it

      Thank you so much, Bob. Now it makes more sense.

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