The Unique Tax Characteristics of Partnerships
Article Abstract:
Confusion concerning income tax treatment of partnerships exists because of the difference between the legal definition and definition for tax purposes of partnership. The tax definition is generally broader than the legal one. The partnership is not subject to taxation, but passes income through to the partners for individual income tax. Partnership agreements can be oral. General versus limited partnerships differ in terms of liability for the partner. Losses and liability is generally limited to funds 'at risk' in a limited partnership. Gains from a negative capital account are always taxed. S Corporations are similar to partnerships except in terms of basis. Distributions are included as gains or losses after they exceed the partner's basis. Special allocations are an advantage to partnerships over corporations. Special elections to adjust basis in the partnership are allowable when someone purchases or acquires, upon death of a partner, a partnership interest. Partners and partnerships can be treated as separate entities, according to the Internal Revenue Code (IRC). Sale of a partnership results in a taxable capital gain or loss. An exchange for like kinds of properties is allowed without immediate tax payment. The IRC prohibits tax deductions for fees paid to syndicate a partnership. Accounting methods are not limited for partnerships, but the year-end must be a calendar year.
Publication Name: Journal of Accountancy
Subject: Law
ISSN: 0021-8448
Year: 1984
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Renault Spares a Thought for Distribution
Article Abstract:
Renault has an automated, efficient distribution service for parts. Telex and telephone are utilized for part ordering and orders are sent to the warehouse for processing. An airtube document conveyor is used to transport the paperwork. The system reduces paper transmission to seconds.
Publication Name: Industrial Management & Data Systems
Subject: Computers and office automation industries
ISSN: 0263-5577
Year: 1983
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On the wagon: Oregon
Article Abstract:
Oregon voters who feel Governor Barbara Roberts wants tax increases are leading a drive to raise enough signatures to petition a recall election. A recent vote asking for tax increases was defeated, but many Oregonians feel Mrs. Roberts wants to try for another increase.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1992
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