The effect of tax laws on partnership choices

Related BrainMass Solutions

• Equity and Ownership Questions

  This means that all of the profits and losses of the partnership "pass through" the business to the partners, who pay taxes on their share of the profits (or deduct their share of the losses) on their individual income tax returns.

• Type of entity for a business to avoid personal liability

  In tax law, there is a huge body of case law dealing with partnership issues. Beyond the partnership, the new business owner can incorporate his business.

• Partnership Accounting Period and Method

  If still there is no choice on the tax year, then the tax year or accounting period chosen should be the one which results to the "least aggregate deferral of income to the partners" (Internal Revenue Service).

• Regulatory Issues and Regulatory Laws?

  For example, safety regulations effect decisions made (choices) around safety issues (e.g., hospitals choose to put up guard rails in the hall ways, railings on the beds so patients do not fall out, bells in the bathroom in the case of an emergency, to

• Review of basic tax laws for partnership, C & S corporation

  Review the basic tax laws of a partnership, C corporation, and S corporation to write a discussion paper that presents the basic tax laws governing each form of business. In your own words with a minimum of two references.

• Partnership Agreements

  The precedent for the substantial economic effect test was established by the Tax Reform Act of 1976, which is found Section 704(b) of the Code.

• Partnership Accounting and Taxation

  Describe the effects, if any, that partnership operations would have on the individual tax returns of the partners.

• Tax Years a Partnership can Elect without IRS Permission

  What is the effect of the excess net passive income tax liability on North's pass-throughs of ordinary income and separately stated items? c. What advice would you give North regarding its activities? 1.

• Business Formation and Choice of Entity

  With the partnership the choices again include taking out loans against the business, or guaranteed payments that have tax consequences to the person taking the payments.