Partnership K-1

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Subject Author Date Partnership K-1 hammer23 01-04-2007  Re: Partnership K-1 Stuart A. Bronstein 01-05-2007  Re: Partnership K-1 Benjamin Yazersky CPA 01-06-2007  Re: Partnership K-1 San Diego CPA 01-07-2007  Re: Partnership K-1 Katie 01-08-2007
Posted by hammer23 on January 4, 2007, 8:54 pm Please log in for more thread options We started a business with another couple in July of 2005 and do not have a signed LLC. Each of the us put in $70,000 to start up the business. Long story short, we stop working with our partners and have requested that they pay us our $70,000 back. The tax accountant who filed the taxes last year for the company did not give us a K-1, because we did not have a singed LLC. The company lost $130,000 and our agreement was that both my wife and I were suppose to 10% each. Even though there was no legal documents signed, shouldn't we have recevied a K-1? << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by Stuart A. Bronstein on January 5, 2007, 8:05 am Please log in for more thread options hammer23@lightblast.net wrote: > We started a business with another couple in July of 2005 > and do not have a signed LLC. Each of the us put in $70,000 > to start up the business. Long story short, we stop working > with our partners and have requested that they pay us our > $70,000 back. The tax accountant who filed the taxes last > year for the company did not give us a K-1, because we did > not have a singed LLC. The company lost $130,000 and our > agreement was that both my wife and I were suppose to 10% > each. Even though there was no legal documents signed, > shouldn't we have recevied a K-1? A K-1 is required for any partnership or an LLC taxed as one. So it doesn't matter that you didn't form an LLC. You don't say which state you are in, but chances are there is a law that says you are partners, and how that partnership will be dealt with in case you don't have a written agreement. So yes, based on what you have said you should have received a K-1. So either you have completely misunderstood what he told you, or the accountant doesn't know what he's talking about. Stu << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by Benjamin Yazersky CPA on January 6, 2007, 12:02 am Please log in for more thread options > We started a business with another couple in July of 2005 > and do not have a signed LLC. Each of the us put in $70,000 > to start up the business. Long story short, we stop working > with our partners and have requested that they pay us our > $70,000 back. The tax accountant who filed the taxes last > year for the company did not give us a K-1, because we did > not have a singed LLC. The company lost $130,000 and our > agreement was that both my wife and I were suppose to 10% > each. Even though there was no legal documents signed, > shouldn't we have recevied a K-1? Technically, the accountant doesn't give the partners their K1's Its the managing partner/member who is responsible for distributing the K1's ___________________________________ <<< Benjamin Yazersky, CPA [NJ & NY] >>> -----> real address on hobokeni or hobokenx <----- << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by San Diego CPA on January 7, 2007, 11:11 pm Please log in for more thread options > We started a business with another couple in July of 2005 > and do not have a signed LLC. Each of the us put in $70,000 > to start up the business. Long story short, we stop working > with our partners and have requested that they pay us our > $70,000 back. The tax accountant who filed the taxes last > year for the company did not give us a K-1, because we did > not have a singed LLC. The company lost $130,000 and our > agreement was that both my wife and I were suppose to 10% > each. Even though there was no legal documents signed, > shouldn't we have recevied a K-1? Without a partnership agreement spelling out the terms of the association of you and your partners, the default treatment is generally that allocation of income & losses will follow the capital accounts. In your scenario, the losses have just about chewed up the entire investment, therefore, your portion of the loss would generally be $65,000 so there's no $70k to get back, maybe $5,000 at best. Who's the managing partner? Who's the tax matters partner? These questions are spelled out in a typical agreement. With certain exceptions, even w/ no written agreement in place a tax return would still have been due. Was a tax return actually prepared and filed? If yes, contact the accountant directly to get your K-1. Sounds like you need either your own CPA, attorney or both to represent you in this matter. << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by Katie on January 8, 2007, 9:58 pm Please log in for more thread options hammer23@lightblast.net wrote: > We started a business with another couple in July of 2005 > and do not have a signed LLC. Each of the us put in $70,000 > to start up the business. Long story short, we stop working > with our partners and have requested that they pay us our > $70,000 back. The tax accountant who filed the taxes last > year for the company did not give us a K-1, because we did > not have a singed LLC. The company lost $130,000 and our > agreement was that both my wife and I were suppose to 10% > each. Even though there was no legal documents signed, > shouldn't we have recevied a K-1? For tax purposes, an unincorporated business association (more than one owner) that is not set up as a specific type of entity (e.g., LLC, trust) is a partnership, even though it may not be a partnership under state law. So yes, the business should have filed a partnership information return and you should have received a K-1. You need to find out whether a return was filed. The relationship between you and the other parties is going to be governed by the law of your state. You need an attorney to represent your interests in this matter. << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Similar Threads Posted new partnership April 12, 2007, 12:25 am LLC (Partnership) Tax Questions November 7, 2006, 8:19 am individual 401(k) in partnership February 6, 2007, 9:58 pm Reporting of partnership February 27, 2007, 4:14 pm LLC taxation as a partnership May 29, 2007, 10:45 pm Re: LLC taxation as a partnership June 12, 2007, 1:07 am Re: LLC taxation as a partnership June 21, 2007, 5:44 pm Partnership Distribution - Not on K-1 October 8, 2007, 6:43 pm Re: Partnership Distribution - Not on K-1 October 9, 2007, 8:28 pm Do I have to file Partnership K-1 ? January 18, 2008, 7:36 pm