Monday, March 3, 2008

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.