Partnerships
The most frequently asked tax questions related to Partnerships
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Answer Tax QuestionsCan my K-1 loss from my PTP offset other K-1 income?
Asked Tuesday, January 03, 2012 by an anonymous user
NO. PTP (Publically Traded Partnership) losses can only be used to offset income from that specific PTP.
It cannot be used to offset income from other PTPs or other K-1 entities.
It cannot be used to offset income from other PTPs or other K-1 entities.
What are benefits of forming a Partnership?
Asked Tuesday, January 03, 2012 by an anonymous user
A partnership is a business in which two or more people agree to share ownership and management responsibility for a business. Often partners get together due to complementary skills. If you pick your partners for their skills, you may split responsibilities among the partners. You no longer have to be good at every aspect of the business, but may divide the duties according to each partners' expertise. Some benefits of forming a Partnership are it is easier to raise capital in a partnership than a sole proprietorship. You no longer have to depend solely on your borrowing power you also have the borrowing capability of your partner(s). In this way it is much easier to grow your business. By sharing in the profits, partners generally work harder and strive for success. You no longer have to depend on only your drive to succeed.
What are some disadvantages of selecting to be a Partnership compared to other entities?
Asked Tuesday, January 03, 2012 by an anonymous user
Just as in a sole proprietorship, partners are still responsible for unlimited liability, both personal and business. Therefore, everything you own is at risk. Also, you cannot make certain important business decisions without the agreement of the partner.
A general partnership offers few tax benefits to business owners.
What are some advantages and disadvantages of selecting to be a Partnership compared to other entities?
Asked Thursday, December 22, 2011 by an anonymous user
An advantage is that it is a way to combine the financial abilities and skills of several different people. Some disadvantages are that the general partners are liable for the actions of the other partners and a partnership is not that easy to get out of. Speak to your local CPA about selecting the best entity for your purposes.
What is a REMIC ?
Asked Friday, November 03, 2000 by an anonymous user
A REMIC is an abbreviation for a Real Estate Mortgage Investment Company. Generally it holds a fixed pool of mortgages. A REMIC is not a taxable entity for federal income tax purposes. Generally, a REMIC is treated as partnership and the partners considered residual interest holders. Net income from the REMIC is passed through to the partners. The partners pass through income issued to the partner on Form 1066, Schedule Q and is reportable on IRS Schedule E, page 2.