Discussion:Loss partnership & sec. 179
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Discussion Forum Index --> Tax Questions --> Loss partnership & sec. 179
| April 2, 2006 | |
| I have a partnership (partnership A) which is a partner in another partnership (partnership B). Partnership A has received a K-1 from Partnership B with an ordinary loss and section 179 expense. Partnership A has no other activity in the current year. I thought that the items reported on the K-1 from partnership B would retain their characteristics and simply pass through partnership A to the the partners of partnership A, and that the net income limitations would apply at the level of the partners of partnership A.
Lacerte is applying the limitation at partnership A level and not letting the section 179 expense flow through. Why does the section 179 get to flow through from partnership B (which also has an operating loss)to its partners, but not flow through partnership A to its partners? Wouldn't the same principle apply? Any help would be appreciated. This makes a major difference on the returns of the partners in partnership A. | |
| 2 April 2006 | |
| The requirements of Section 179 would be tested at every entity level I believe. Without knowing specific numbers and circumstances it is hard to say why it was present on Partnership B Schedule K-1. You migh have to talk to the tax preparer of the other partnership. | |
| 2 April 2006 | |
| my incredibly faulty mermory thinks a separate 4562 is required in the case of more than one business. | |
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