partnership1 - Partnership 2 or more entities coming...

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Partnership 2 or more entities coming together with a business purpose Form 1065 Flow-through entity Partnership agreement Special allocation of income/loss/deduction/gain Aggregate Separate Dividend income Interest income Loyalty income Capital gain Charitable contribution Section 179 expense Investment interest expense Basis= Boy basis + adjusted basis of property transferred +services provided(FMV) +share of ordinary partnership income/gains/portfolio income +partnership’s share of partnership(liabliltiy) -Distribution(not guaranted payment) -share of loss/deduction -share of non-deduction expense Eoy basis
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Assets=liability+equity Assets=Basis Ch 10.41 Ordinary corporate income Sales revenue 130,000 COGS (45,000) Depreciation (12,000) Utility (15,000) Rent expense (16,000) Ordinary Income 42,000 Separated Stock Dividend income 4000 Distribution (10,000) Distribution (8000) Bob’s basis 14000+boy basis 21000=42000/2 2000=4000/2 (8000) 29,000 Eoy basis Rob: 9000+21000+2000-10000=22000
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This note was uploaded on 11/25/2010 for the course ACCY 650 taught by Professor Cripe during the Fall '09 term at Northern Illinois University.

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partnership1 - Partnership 2 or more entities coming...

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