Agree. Partnership can allocate as they wish but it needs to reflect the actual

Dec 14, 2024
9:40:01am

citron Redshirt Freshman

Economics of the arrangement. Giving one partner lots of income simply because they are in a low tax bracket isn't going to cut it.

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citron

Bio page: citron
Joined: May 3, 2022
Last login: Dec 14, 2024
Total posts: 192 (1 FO)

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Messages

Author

Time

Tax question I don’t know the answer for and not sure where to look

Acorn

9:15am

You know that you’re the guy we turn to with these types of questions, right?

TwinsRight

9:16am

Love to help people but this one is a bit out of my range. Tricky question that

Acorn

10:37am

I don’t see what the problem would be but would ask an accountant ultimately.

bluecougar1985

9:19am

What does the partnership agreement say? Also have to consider self employment

Chester Copperpot

9:19am

This

Taxrulz

10:18am

Partnership agreement can be amended. Both are subject to identical self

Acorn

10:47am

They might not be subject to the same SE taxes based on the wages of the

Chester Copperpot

11:52am

This isn’t my first rodeo. Thanks for the second paragraph.

Acorn

1:20pm

You can have shifting allocations in an LLC (partnership). Like mentioned, what

JB2JH

9:26am

If the individual receiving the additional income is also going to receive

JB2JH

9:33am

Agree. Partnership can allocate as they wish but it needs to reflect the actual

citron

9:40am

This can be covered based on reported time spent time spent

Acorn

10:35am

Are you saying the lower tax bracket partner would receive the taxable income

JB2JH

10:53am

You can if you want to spend some time in Sing Sing.

TeeKaa

11:09am

I didn’t ask him how they would true up the balance. The only way I could think

Acorn

1:14pm

Only 50k? Pretty small $ to be messing around with special allocations and

citron

12:14pm

Understood. They’re bootstrapping everything right now and if they could save

Acorn

1:23pm

Great stuff. Thanks for the link. I will read it.

Acorn

10:44am

Yes the IRS cares about allocations

TeeKaa

9:53am

This is good advice

Taxrulz

10:23am

Exactly. From this slightly above average run of the mill CPA…me

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