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CCH Essentials of Federal Income Taxation 3 of 14 Chapter 15 Reporting Partnership Income Reporting and Deductions and
A partnership is not a taxable entity. A partnership passes through income and passes expenses to the individual partners. expenses Chapter 15 CCH Essentials of Federal Income Taxation 4 of 14 Partnership Ordinary Income
Gross receipts or gross sales Less returns and allowances Less cost of goods sold Gross profit Ordinary income or (loss) from other partnerships and fiduciaries Net farm profit or (loss) Net ordinary gain or (loss) from Form 4797 Other income or (loss) Total income or (loss) Less: Allowable operating expenses Guaranteed payments Ordinary income or (loss) from trade or business
Chapter 15 CCH Essentials of Federal Income Taxation $xx xx $xx xx $xx xx xx xx xx $xx $xx xx xx $xx
5 of 14 Examples of Separately Stated Items
• Rental income • Interest income • Dividend income • Royalty income • Short-term capital gains Short-term • • • • • • Section 179 deductions • Portfolio expenses • Credits and credit recaptures • Self-employment earnings • AMT adjustments and AMT • • • •
preferences preferences Foreign taxes Tax-exempt income Nondeductible expenses Personal expenses paid for Personal partners partners (losses) (losses) Long-term capital gains Long-term (losses) (losses) Other portfolio income Guaranteed payments* Section 1231 gains Charitable contributions * Deducted in total...
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- Spring '10