Filing as Sole Proprieter for my main business but have small general partnership business on the side

Posted by 20vtguy on March 16, 2009, 11:37 pm

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I am currently a self-employed computer technician. I file my taxes as
a sole proprietor using Turbotax Home and Business and have been for
the last few years. I like it and its easy.
In 2008 I also got involved in a small vending business with a friend
placing small candy machines at locations. We registered the business
as a general partnership. We have not really gotten it off the ground
yet and only grossed about $1000 last year and after expenses we will
likely be negative. Wanted to know the best way to file our taxes for
that business. I considered using Turbotax Business which is for Corps
and Partnerships. Is that good way to do it or would I be better off
using an accountant for the partnership business. Is there anything
special I should be aware of in respect to taxes and a general
partnership or is it pretty straightforward?

Thanks in advance,
Adam

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Posted by Frank S. Duke, Jr. on March 17, 2009, 5:53 am

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in article 930bd74c-eecc-4c34-b777-dbdd9a2eb0ca@j8g2000yql.googlegroups.com,
20vtguy at 20vtguy@gmail.com wrote on 3/16/09 11:37 PM:

> I am currently a self-employed computer technician. I file my taxes as

> a sole proprietor using Turbotax Home and Business and have been for

> the last few years. I like it and its easy.

> In 2008 I also got involved in a small vending business with a friend

> placing small candy machines at locations. We registered the business

> as a general partnership. We have not really gotten it off the ground

> yet and only grossed about $1000 last year and after expenses we will

> likely be negative. Wanted to know the best way to file our taxes for

> that business. I considered using Turbotax Business which is for Corps

> and Partnerships. Is that good way to do it or would I be better off

> using an accountant for the partnership business. Is there anything

> special I should be aware of in respect to taxes and a general

> partnership or is it pretty straightforward?

> Thanks in advance,

> Adam

The business would file a 1065 partnership return to report the income and
expenses and the partnership would issue K-1s to each of the partners for
entry on their personal returns. The partnership would not pay tax.

I have not used TurboTax Business in several years but as I recall, it can
do Form 1065 quite well. The catch is that it is over $100. If I do it in
ProSeries as pay for return, the software fee is $30 and $3 for E-file. I
only do a few of these so I don't license the software.
Uncompensated advice guaranteed correct or double your money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>