Discussion:Partnership cash distribution
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Discussion Forum Index --> Tax Questions --> Partnership cash distribution
| 18 June 2007 | |
| Situation:
- A first year partner received a $2,000 monthly guaranteed payment - His share of the ordinary business income was $55,000 - His combined income and SE tax rate on his earned income is 30% Questions: - What is his after-tax cash flow assuming in additon to his guaranteed payments, the partner received a $10,000 cash distribution from the partnership? - What is his after-tax cash flow assuming in additon to his guaranteed payments, the partner received a $50,000 cash distribution from the partnership? | |
| 18 June 2007 | |
| Not sure what the question is...you've layed out the issue, just do the math. | |
| 18 June 2007 | |
| Since the partnership doesn't pay tax, the partner pays on the income earned. It's part of the 1040. Not enough info to determine what the 1040 should look like. You should be able to estimate it. | |
| 18 June 2007 | |
| Since you obviously represent the taxpayer, you know all of his other items of income and deductions, so it is only a matter of plugging in these pieces of info. Really simple, assuming you know your client. | |
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