I have a client that is a 1/3 partner in an Eligble Small Business partnership. The first year of the partnership was 2009.
The t/p's return for 2010 has been extended due to the fact the K-1 was not ready. The other day I received the final K-1 for the year 2010 and this year the partnership is eligble for the R&D credit and the amount passed through to the t/p is $9,000. This is the only business credit passed through to the t/p for 2010. There were no general business credits passed through for 2009.
I have determined the taxable income that is attributable to the partner's interest in the partnership. Based upon my calculation the partner has an unused general business credit of $6,225 for 2010.
I have read the Form 3800 instructions and applicable code sections regarding the general business credit. Based upon my understanding the t/p can carryback the unused credit to 2009 and apply it to the partners attributable taxable income tax for that year via a Form 1040X.Is my thought process correct here????
I am a small sole practitioner and this is my first experience with the general business credit and the carryback provision-want to get it right.
Thank you in advance
The t/p's return for 2010 has been extended due to the fact the K-1 was not ready. The other day I received the final K-1 for the year 2010 and this year the partnership is eligble for the R&D credit and the amount passed through to the t/p is $9,000. This is the only business credit passed through to the t/p for 2010. There were no general business credits passed through for 2009.
I have determined the taxable income that is attributable to the partner's interest in the partnership. Based upon my calculation the partner has an unused general business credit of $6,225 for 2010.
I have read the Form 3800 instructions and applicable code sections regarding the general business credit. Based upon my understanding the t/p can carryback the unused credit to 2009 and apply it to the partners attributable taxable income tax for that year via a Form 1040X.Is my thought process correct here????
I am a small sole practitioner and this is my first experience with the general business credit and the carryback provision-want to get it right.
Thank you in advance