Shay nay nay asked:
I have a new business that is set up as a general partnership with myself and one other individual. How do we report the income our business is generating? Do we each claim half on our individual filings?
Collecting Comix
I have a new business that is set up as a general partnership with myself and one other individual. How do we report the income our business is generating? Do we each claim half on our individual filings?
Collecting Comix
Filed under:
Business
ProConsultancy.com
A 1065 partnership tax return should be filed and each partner will get a sch K-1 from the partnership. The sch K-1 will break down the partnership’s income or loss that is reportable by that partner on his or her personal 1040 tax return.
Low Cost Bargain
quarterly
Failed Experiment
When you have a partnership, the partnership files Form 1065 and does not pay any taxes. The profit of a partnership is distributed among the partners, and is reported on Schedule K-1.
Partners must include this profit in their own income and on this income pay 15.3% employment taxes.