Elder Attorney had practiced law for several years and had accumulated $50,000 in accounts receivable. He reported his income for tax purposes under the cash receipts and disbursements method. Elder formed an equal partnership with Senior Counsel, Lawyers Unlimited, a cash-basis law partnership, and transferred his $50,000 accounts receivable to the partnership for their admitted FMV of $50,000. In the first year of the partnership, its cash-basis income was $100,000, $50,000 of which was the collection of the transferred receivables. When is the income of the partnership reported and by whom?© BrainMass Inc. brainmass.com June 3, 2020, 10:47 pm ad1c9bdddf
A partnership must file an annual information tax return stating all the items of taxable ...
Issues such as reporting the income of partnership for tax purposes are discussed.