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Understanding Partners' Income Impact

The document provides financial information for a partnership including fees received, costs, salaries paid, taxes paid, and net ordinary business income. It also lists separately stated items including rental income, bond interest, charitable contributions, capital gains, and dividend income which each impact partners' tax liability differently.

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3 views2 pages

Understanding Partners' Income Impact

The document provides financial information for a partnership including fees received, costs, salaries paid, taxes paid, and net ordinary business income. It also lists separately stated items including rental income, bond interest, charitable contributions, capital gains, and dividend income which each impact partners' tax liability differently.

Uploaded by

fads
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

An item has to be separately stated if it impacts the partners' income, deduction, gain,or loss separate (results in a different im

Net Ordinary Business Income

Fees received 90,000


Cost recovery 5,600
Salaries paid ( 45000 )
cost recovery deductions ( 18000 )
Payroll taxes paid ( 12500 )
Suppliers,repairs ( 2000 )
Net ordinary business income $ 18,100.00 *1/3 $ 6,033.33

Separately Stated Item


Rental Income 8,500 *1/3 Can be offset with passive losses
Municipal bond interest 1,100 *1/3 Must be added back in determining E&P
Charitable contributions 1,000 *1/3 Subject to taxpayer limitation. 50% of TI for
Short-term capital gain 17,000 *1/3 Can be offset with capital losses
Dividend income 2,500 *1/3 Corporations can get DRD and individuals ge
10033.3333
(results in a different impact to partners' tax liability).

assive losses
in determining E&P
imitation. 50% of TI for individuals and 10% for corporations
apital losses
t DRD and individuals get preferential rate (20%)

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