Bookstore  
  Home > UncleFed's Bookstore > Holmes F. Crouch > Holmes F. Crouch

Making Partnerships Work (204)
Author: Holmes F. Crouch
Pages: 224
List Price: $19.95
  • Order from Amazon.com
  • Order from Barnes & Noble.com

  • Summary

    MAKING PARTNERSHIPS WORK (T/G 204) covers the ingredients of a partnership agreement as interpreted by the IRS; the establishment of basic operating rules (co-liability on decisions, frugality of expenditures, central books of account, etc.); and the segregation of activities into trade or business, rental real estate, other rentals, and portfolio. Also covered:

    • Role of "material participation" hours
    • Ownership percentages: beginning/ending
    • Selection of partnership accounting year
    • Applicability of the self-employment tax
    • Distributive share credits & deductions
    • Balance sheet "reconciliation" techniques

    Table of Contents
    Making Partnerships Work
    Book:  204
    
    Table of Contents
    
    1.  GENERAL ATTRIBUTES                          1-1
    
        How “Partnership” Tax Defined               1-2
        Election to be Excluded                     1-3
        Avoid Certain Corporate Traits              1-5
        Who Can Be Partners?                        1-6
        Multiple Sources of Income                  1-8
        Conformity to “Subchapter K”                1-10
        Partnership Itself, Not Taxable             1-12
        Partnership Accounting Year                 1-13
        Classifying Individual Partners             1-15
        Tax Matters Partner                         1-17
    
    2.  THE PARTNERSHIP AGREEMENT                   2-1
    
        The Agreement as a Yardstick                2-2
        Not a “Stand Alone” Document                2-3
        Use It, or Lose it                          2-4 
        Substantial Economic Effect?                2-6
        Maintenance of Capital Accounts             2-7
        Assignment of Liabilities                   2-9
        Tax Collections Account                     2-11
        Set Participation Hours                     2-12
        Set 3-Page Limit                            2-14
        Example: How Things Go Sour                 2-15
        Another Example Gone Sour                   2-17
    
    3.  UNIFORM PARTNERSHIP ACT                     3-1
    
        Joint & Several Liability                   3-2
        Rules for Determining Existence             3-4     
        Unwitting Misrepresentations                3-6
        The Catchall Legalese                       3-7
        General Partnership Presumed                3-8
        Rights & Duties of Partners                 3-10
        Right to Inspect Books                      3-11
        Accounting & Disclosure to Partnership      3-13
    
    4.  PARTNERS’ CAPITAL ACCOUNTS                  4-1
    
        First:  A Bank Account                      4-2
        Make Separate Capital Deposits              4-4
        Basic Rule:  Capital Accounts               4-5
        When Property Contributed                   4-7
        The “Nonrecognition” Rule                   4-9
        Contribution of Services                    4-10
        Property with Liabilities                   4-11
        Sections 721 and 722 Compared               4-13
        Comprehensive Example: Part I               4-15
        Comprehensive Example: Part II              4-16
        Beginning of Year Accounting                4-19
        Allocations & Distributions                 4-20
        Not a Private “Piggy Bank”                  4-21
    
    5.  BASIC OPERATING RULES                       5-1
    
        When “Presumed” Not-for-Profit              5-2
        Frugality First 3 Years                     5-4
        At-Risk Limitation Amount                   5-6
        Inventory Cost Capitalization               5-7
        The Section 179 Election                    5-9
        Passive Activity Limitations                5-12
        Character-of-Origin Treatment               5-14
    
    6.  OVERVIEW OF FORM 1065                       6-1
    
        Applying for EIN                            6-2
        Head Part of Form 1065                      6-4
        Format Highly Abbreviated                   6-5
        Schedules K & K-1 Distinguished             6-8
        Form 1065 vs. Schedule K                    6-9
        Portfolio Income Defined                    6-11
        Rental Activities Defined                   6-12
        Job-Log Each Partner                        6-14
    
    7.  ORDINARY INCOME OR LOSS                     7-1
    
        Cost of Goods Sold                          7-2
        Dollar Items on Schedule A                  7-4
        Ending Inventory Valuation                  7-5
        Gross Receipts to Gross Profit              7-7
        Gross Profit to Total Income                7-10
        Preprinted Deduction Items                  7-12
        Guaranteed Payments to Partners             7-14
        Other Deductions: Itemize                   7-15
        Finally, the “Bottom Line”                  7-17
    
    8.  OTHER INCOME & SCHEDULE K                   8-1
    
        Overview of Schedule K                      8-2
        Preprinted Lines: Income/Loss               8-4
        Rental Activities & Form 8825               8-6
        Portfolio Schedule D                        8-8
        Section 1231 Dispositions                   8-9
        Deductions: Rather Few                      8-11
        Self-Employment Earnings                    8-12
        Adjustments & Preferences for AMT           8-15
        Section 59 (e)(2) Expenditures              8-17
        Other Lines on Schedule K                   8-18
        Overall Income or Loss                      8-19
        Reconciliation Analysis                     8-20
    
    9.  BALANCING BALANCE SHEETS                    9-1
    
        Overview of Schedule L                      9-2
        Four Special Assets                         9-5
        Liabilities and Capital                     9-6
        The Balancing Act                           9-7
        Income Reconciliation Overview              9-10
        Completing Schedule M-1                     9-11
        Completing Schedule M-2                     9-13
        Existence of “Fudging Authority”            9-15
        The Final M-2 Adjustments                   9-17
        When Balancing Not Required                 9-18
    
    10. MULTIPLE SCHEDULES K-1                      10-1
    
        Timely Issuance Problem                     10-2
        Overview of K-1 Format                      10-4
        General Information Entries                 10-6
        Partner’s Sharing Percentages               10-8
        Analysis of Partner’s Capital               10-10
        Nerve Center of Controversy                 10-12
        Distributive Sharing vs. Distributions      10-14
        What If Errors or Questions?                10-16
        
    11. EACH PARTNER’S RETURN                       11-1
    
        IRS K-1 Instructions: A “Must”              11-2
        Line 1- Ordinary Income/Loss                11-3
        Schedule E (Form 1040), Part II             11-6
        Line2-Net Income/Loss: Real Estate          11-7
        Lines 3, 5, and 9 Go Where?                 11-8
        Now, Schedule E Instructions                11-9
        Other Schedules and Forms                   11-13
        State K-1 Forms                             11-14
    
    12. DISPOSITION OF INTERESTS                    12-1
    
        Percentage Ownership of What?               12-2
        The Gist of Section 751                     12-4
        Unrealized Receivables                      12-5
        Inventory Items                             12-7
        Notification & Report of Transfer           12-9
        Transferor’s Gain or Loss                   12-10
        Distributive Share Items                    12-11
        Basis Disputes & Adjustments                12-13
        Exchange to Corporate Stock                 12-14

    UF Bookstore Main | Home