Explore BrainMass
Share

Discuss the tax law requirements to form a partnership. Incl

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

1. Discuss the tax law requirements to form a partnership. Include in your discussion the difference in income items, specifically; highlight which items are separately stated. Discuss the calculation of the owners' distributive share and basis.

2. Discuss the tax law requirements to form a S Corporation. Include in your discussion the difference in income items, specifically; highlight which items are separately stated. Discuss the calculation of the owners' distributive share and basis.

© BrainMass Inc. brainmass.com October 17, 2018, 4:09 am ad1c9bdddf
https://brainmass.com/business/business-law/discuss-the-tax-law-requirements-to-form-a-partnership-incl-451924

Solution Preview

The tax law requirements for the partnership fall on the partners. The partnership is not a tax paying entity. The partnership will file a Form 1065 each year, which is an information return. The net income from the partnership becomes taxable to the partners. Each partner will receive a Schedule K-1 from the partnership with their respective percentage of the partnership's income, which is based on their percent of ownership in the partnership.

Partnership income items that are separately stated include net short-term and net long-term capital gains and losses, Section 1231 gains and losses, charitable contributions, dividends that qualify for a dividend-received deduction, taxes that are paid to a foreign country or to a U.S. possession, and any miscellaneous items as listed in Section 702(a) of the Internal Revenue Code.

The owners' distributive share and basis is calculated as per Internal ...

Solution Summary

Discuss the tax law requirements to form a partnership. Include in your discussion the difference in income items, specifically; highlight which items are separately stated. Discuss the calculation of the owners' distributive share and basis.

2. Discuss the tax law requirements to form a S Corporation. Include in your discussion the difference in income items, specifically; highlight which items are separately stated. Discuss the calculation of the owners' distributive share and basis.

$2.19
Similar Posting

Need help with developing a business plan if I was to have a business in Venezuela.

I need help developing a business plan if I was to have a business in Venezuela.

My business will be with oil.

The need the benefits and drawbacks for the country of Venezuela as a result of their membership in Mercosur.

The benefits and drawbacks for the business as a result of their membership in Mercosur.

What adjustments will I need to be made to your business as a result of this?

View Full Posting Details