1065 – Partnership Tax Return

**How Income Is Shared Among Partners: Allocate shares of income, gain, loss,
deduction, or credit among the partners according to the partnership agreement for sharing income or loss generally. Partners may agree to allocate specific items in a ratio different from the ratio for sharing income or loss. For instance, if the net income exclusive of specially allocated items is divided evenly among three partners but some special items are allocated 50% to one, 30% to another, and 20% to the third partner.

**A partnership is the relationship between two or more persons who join to carry on a trade or business, with each person contributing money, property, labor, or skill and each expecting to share in the profits and losses of the business whether or not a formal partnership agreement is made. Form 1065 is an information return used to report the income, gains, losses, deductions, credits, and other information from the operation of a partnership. A partnership doesn’t pay tax on its income but passes through any profits or losses to its partners.**

  • Basis Tracking for new partners and equipment. Asset Management Analysis will be performed.
  • **Business start-up and organizational costs. Generally, a partnership can elect to deduct a limited amount of start-up or organizational costs paid or incurred. Any costs not deducted must be amortized
  • **Temporary allowance of 100% business meals. A partnership is allowed a 100% deduction for certain business meals paid or incurred in 2021 and 2022.
  • Tax Strategies for Distribution Tax Rate. Tax on your tax rate for distributions on the capital gains rate vs W2 income. (Tax Tip)
    • We help with Couples Real Estate – Schedule E compilations Production of K-1 and Flow Thru Distributions/Credits available for all clients.