Yes, the profits and losses should be allocated between all three partners. In your case, the profits or losses would be allocated between three partners for the first 6 months period with a share of 33.33% each. The percentage will change from 33.33% to 50% each for the remaining 2 partners for the remaining period of the year. You should receive a Sch K-1, if you had some losses then it will help you lower your taxable income which could also help you lower your overall tax bill.

I hope this helps. Let me know if I can be of further assistance.



Your Wrote:
Hello. I was a general partner in a very unsuccessful craft based company with two friends. I gave my share in the company to the other women on July 1 of this year -- half way through the tax year. I went from owning 33.33% of the business to 0%, and they both went from 33.33% to 50%. I received copies of their Schedule K-1 (1065) in the mail, but nothing for myself. Wouldn't their accountant still have had to fill out a Schedule K-1 (1065) for me as well because I was a general partner for 6 months this year? Thank you for your time.