Partnership

[Lion]

I go through this every September, preparing one last S-corp and one last partnership, just alike enough that the differences confuse me so much I can't even understand my notes from a year ago.

Partnership. Husband and wife partners. P pays W guaranteed payments. Plus Health Insurance, that gets added to GP, right? And, now HSA, add to GP, also? All will end up on her K-1 as SE income?

Partnership paid SIMPLE $11,500 + $1,606. I always struggle over this. (Wish I did several of these to pound it into my head, but my earlier partnerships have SEPs; only the tardy S-corp has a SIMPLE.)

Individual return for the couple. Does the $11,500 end up above the line? Does the $1,606 go over to personal? Does the HSA go above the line?

Was up really late the last several nights, and it's as if I never prepared this return before! Of course, the muscle relaxant for my back also acts on my brain.

[veritas]

partners expenses

From TTB:
Self-employed health insurance premiums. Premiums for
health insurance paid by a partnership on behalf of a partner
for services rendered are treated as guaranteed payments. The
partnership can deduct the payments as a business expense and
the partner must include the payments in gross income.

Simple contributions are not deducted at the partnership level. They go on the K-1, line 13, code R.

For the HSA see:

http://www.irs.gov/irb/2005-04_IRB/ar13.html

[Lion]

Thank You

Thank you very much. Still stuggling to get this partnership to balance out.

Do both parts of the SIMPLE go on the K-1? Even the partnership "employer" match does NOT get deducted at the partnership level?

[veritas]

Yes

Thank you very much. Still stuggling to get this partnership to balance out.

Do both parts of the SIMPLE go on the K-1? Even the partnership "employer" match does NOT get deducted at the partnership level?

both parts for the partners go on the K-1.

See page 20-22 in Deluxe edition TTB.

[Lion]

Veritas

Veritas, you're great !!

[veritas]

Thank you

Veritas, you're great !!

This board has been very helpful to me and I like to help where I can.