Partnership -Sec 179, 4797 gains etc.

[equinecpa]

I am doing a partnership return which consists of groups of investors investing in various horses. The individual partners income/expenses are determined on their % interest in certain horses and not as a fixed partnership %.

This is easy enough until I get to gains from sales of horses and sec 179 claims. Can these items be distributed other than as a fixed % of partnership income ie can I allocate them based on the internal partnership books?

It seems I should be able to allocate these but I thought I'd check first.

Gosh this is going to be a fun one...lots of overides in the foreseeable future!

Carolyn

[Bees Knees]

All separately stated items on the Schedule K can have special allocations to the K-1s, as long as they make some sort of economic sense and you are not trying to shift income from a high income taxpayer to a low income taxpayer (such as in a family partnership). It will make for one messing set of work papers to keep track of everything, but it can be done. That is the nice part of being a partnership rather than an S corporation.