artnership formed in the US; has two partners one partner is a resident the other partner is a nonresident US partner. The partnership will be fifty – fifty ownership but the foreign US partner share losses and gains of the partnership is 0% for now as the resident partner performs all the services.
I have a client who is a partner in a partnership that would like to compensate an outside independent contractor with ownership in the entity. Would it be possible to treat the ownership interest as guaranteed payments?
If a partner transfers his interest into his trust, should there be two K-1 forms issued? Also, is Form 8308 required to be filed? I’m the accountant for this client.
For unreimbursed partner expenses, I know that the partner can claim these expenses on Schedule E of their individual tax return. However, where does a shareholder claim unreimbursed business expenses?
My client purchased the entire interest in a partnership on December 31, 2014, the last day of its fiscal year. Technically, the sale occurred at 11:59 pm so that there would not be any allocation of profit and loss from 2014.