Today, I want to continue looking at the partnership capital account. But before I get into the details, let’s review a few basic points. First, from a tax perspective, partners share the economic benefits and burdens of ownership. That means if a partnership makes money, the partners do too. But if the partnership needs more money to continue as a going concern, the partners will have to contribute additional funds. In addition, the allocations of a partner’s capital account must have “substantial economic effect.” This is a term of art in the tax world. In order to have economic effect, the computations for the partner’s capital account must comply with three requirements. I covered the first last week (Part I). This week, we’ll look at the remaining two. Read more
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26 Dec 2013
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- Did Mr. FBAR Pay A Surprise Visit To Canada?By John RichardsonThis is one more of my posts about Mr. FBAR. Mr. FBAR is a mean, nasty vicious thug who has no place in any civilized society. Thomas Jefferson once said: Were it left to me to decide whether we […]
- New FATCA Agreements Released, 2014 Agreements ExpireBy William ByrnesThe IRS released Revenue Procedure 2017-21, which contains the updated withholding foreign partnership (WP) agreement and withholding foreign trust (WT) agreement. The revenue procedure provides […]
- Hale Stewart’s Captive Insurance Webinar – April 4thBy Hale StewartWhile captive insurance companies have been used by large companies for over 60 years, their use by small and medium sized companies is still in its infancy. There are numerous reason for this, but […]
- Don’t Miss These Credits That Will Grant You Tax Relief!By Debra ThompsonMillions of Americans forgo critical tax relief each year by failing to claim the Earned Income Tax Credit (EITC), a federal tax credit for individuals who work but do not earn high incomes. […]
- Canadian Tax FAQ – Shareholder Loans On A Balance SheetBy Grant GilmourWhat are Shareholder Loans on a Balance Sheet? The Shareholder Loans category may appear as a short term or long term liability on a Balance Sheet. Shareholder Loan is a loan by a corporation to one […]
- Did Mr. FBAR Pay A Surprise Visit To Canada?