Class 5b Partnerships Earnings

Class 5b - OnlineLectureSeries Partnerships ,CPA IncomeofPartnership 2stepapproach Step1: expenses relatedtothe tradeorbusinessof thepar

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Taxation of the Business Entity Online Lecture Series Presented by Akore Berliner, CPA Partnerships  Earnings and Operations
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Income of Partnership Calculation of partnership income is a  2-step approach Step 1:  Net ordinary income and  expenses          related to the  trade or business of                         the partnership Step 2:  Segregate and report 
Background image of page 2
Separately Stated Items If an item of income, expense, gain or loss  might  affect any 2 partners’ tax liabilities  differently, it is  separately stated These items are reported on Schedule K  Each Partner’s share is reported on  Schedule K-1
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Examples of Separately               Stated Items Short and long-term capital gains and  losses § 1231 gains and losses Domestic production activities  deduction Charitable contributions Interest income and other portfolio  income Expenses related to portfolio income
Background image of page 4
Examples of Separately               Stated Items Personalty expensed under §179 Special allocations of income or  expense AMT preference and adjustment  items Passive activity items Self-employment income Foreign taxes paid
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Partnership Taxable Income  Example  (slide 1 of 3) Sales revenue             $100,000 Salaries   35,000 Rent   15,000 Utilities     6,000 Interest income     1,500 Charitable contribution     2,000 AMT adjustment for depreciation      3,600 Payment of partner’s medical expenses      4,000
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/11/2011 for the course ACCT 103 taught by Professor Huxhold during the Spring '11 term at San Diego.

Page1 / 20

Class 5b - OnlineLectureSeries Partnerships ,CPA IncomeofPartnership 2stepapproach Step1: expenses relatedtothe tradeorbusinessof thepar

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online