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Dec 14, 2024
9:26
:06
am
JB2JH
All-American
You can have shifting allocations in an LLC (partnership). Like mentioned, what
are the allocations per the partnership agreement? You can amend the agreement, but that has to be done by 3/15/2025 to be in effect for the 2024 tax year.
Look into substantial economic effect. This is a good resource-
https://www.taxlawforchb.com/2016/02/partnership-tax-allocations-follow-the-economics/#:~:text=In%20general%2C%20the%20determination%20of,the%20allocation%20must%20be%20substantial
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JB2JH
Previous username
Cougarmayn
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JB2JH
Joined
Oct 27, 2007
Last login
Dec 14, 2024
Total posts
1,626 (0 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
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
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
Acorn
10:43am
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