Partnership and losses

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  • JenMO
    Senior Member
    • Apr 2007
    • 974
    #1

    Partnership and losses

    partnership has a loss, one major partner, several small percentage partners. Can the major partner take the total loss, or must the loss be distributed according to % of ownership to all partners?
    Tags: None
    • Lion
      Senior Member
      • Jun 2005
      • 4698
      #2
      Read the partnership agreement to see how losses are distributed. Does it say the major partner receives 100% of a loss? Absent a partnership agreement that addresses this issue, what does your state law say?

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        • ttbtaxes
          Senior Member
          • Jan 2011
          • 580
          #3
          You can have a "special allocations" but they need to meet the tests of economic substance.

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