Partnership

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  • Lion
    Senior Member
    • Jun 2005
    • 4699

    #1

    Partnership

    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
    Senior Member
    • Dec 2005
    • 3290

    #2
    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:

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    • Lion
      Senior Member
      • Jun 2005
      • 4699

      #3
      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?

      Comment

      • veritas
        Senior Member
        • Dec 2005
        • 3290

        #4
        Yes

        Originally posted by Lion
        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.
        Last edited by veritas; 09-28-2011, 10:51 AM.

        Comment

        • Lion
          Senior Member
          • Jun 2005
          • 4699

          #5
          Veritas

          Veritas, you're great !!

          Comment

          • veritas
            Senior Member
            • Dec 2005
            • 3290

            #6
            Thank you

            Originally posted by Lion
            Veritas, you're great !!
            This board has been very helpful to me and I like to help where I can.

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