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nambivar
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| Posted: 25 Aug 2011 at 17:26 | IP Logged
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mcq 24 in module 36
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nambivar
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| Posted: 25 Aug 2011 at 17:33 | IP Logged
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For your qn on ""A partnership owned by Joe Meeker and
Taylor Corporation"" etc the working is as follows:
Gteed pmt in '08: 500*9=4500+
Gteed pmt in '09: 750*3=2250+
share in profit of 08: 30%*40000=12000
Total=18750
Note: the profit of 09 will enter his return in next year
just like the gteed pmts.
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cwang1026
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| Posted: 25 Aug 2011 at 17:41 | IP Logged
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ah, okay. so guaranteed payments must be allocated in the same way as partner's fiscal year and only 2009 fiscal year will be included in his income (no proration)
Thanks nambivar..you have been a great help!!
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nambivar
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| Posted: 26 Aug 2011 at 06:59 | IP Logged
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This is how I understand this concept:
Partners have to report their distributable share of
income and the gteed pmts they receive for THEIR taxable
year (12/31/2009 in your qn) during which the END OF THE
PARTNERSHIP YEAR occurs (03/31/2009 in your qn).
So, for the partner to report in his/her calendar year
ending 2009, look into gteed pmts he/she received upto
the 12 month ending 03/31/2009, and similarly for his/her
share of income (profits from the partnerhip in your qn)
for the 12 months ending 03/31/2009.
No mix up of proration etc.
This way the solution is easy to understand.
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Topic: partnership tax year vs. individual
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