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QQ6688
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Posted: 05 Apr 2012 at 03:43 \| IP Logged

A limited partner is a foreign corporation and the partnership is loss income. Does the limited partner need to file income tax?

musicamor04
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Posted: 05 Apr 2012 at 09:37 \| IP Logged

A limited partner wouldn't recognize any loss on partnership income because they are generally considered passive. Passive activity losses do not offset ordinary income unless the passive activity relates to rental activity, then there is an exception.

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QQ6688
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Posted: 11 Apr 2012 at 05:41 \| IP Logged

Does it need to file the income tax?

musicamor04
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Posted: 11 Apr 2012 at 09:10 \| IP Logged

Yes, since it must have been registered to operate in the US. The partnership would file Form 1065 and it would issue K-1's to all of its partners.

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QQ6688
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Posted: 11 Apr 2012 at 22:17 \| IP Logged

thanks for your reply. but I mean partner, not partnership.

I recentrly research the IRS webside that if partnership distributes money to foreign partner, partnership may pay a withholding tax. So is that meaning forieng partner does not need to file income tax for this distribution?

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