Discussion Archives:Partnership Filing as Multiple Sole Props.

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Accounting Questions --> Partnership Filing as Multiple Sole Props.

Taxxfriendly (talk|edits) said:

20 December 2007
I had a new client come who has several family members and himself doing business together for many years back to the 70's. He divides all of the income and expenses between them and they all file as sole propietors instead filing a partnership return.

Are they required to file a partnership return?

Taxxfriendly (talk|edits) said:

20 December 2007
Sorry, I should have probably put this under something else. I am just looking to see if anyone can give me some direction on whether or not they are required to file as a partnership. I read that 2 people or more people doing business together are a considered a partnership however there are some exceptions. This is a dairy farm... very profitable and they all use the section 179 expense.

I am having a hard time finding the rules for prior to 1996, to see if they can continue filing as they have. Any direction would be greatly appreciated!

Pegoo (talk|edits) said:

20 December 2007
Different barbers and salonists working under one roof can be sole proprietors. It depends on the circumstances.

Taxxfriendly (talk|edits) said:

20 December 2007
These are dairy farmers, they all work on the same farm, sell the milk they produce to the creamery. It all goes to one checkbook and they pay the bills out of that checkbook. At the end of the year, they divide the income and expenses up and report as sole prop.

CrowJD (talk|edits) said:

21 December 2007
Tax, no offense, but please fill out your profile. Your Question: they are two or more people joined together for the purpose of making a profit. That's a partnership, in my opinion. Their partnership agreement would be the default agreement under state law since it does not appear they have a written one. I think you may need to transfer this to the advanced taxation board, and someone here can probably do that, I don't know how. Things are never as bad as they seem, at least they have been filing some kind of return; it's possible they've gone way beyond the 179 limitations, though. A lot of potential issues. Now, see if someone will transfer this for you, or contact Tim Doyle and see if he will do it for you. Good luck.
Personal tools