Discussion:Partner basis
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| Revision as of 17:38, 12 May 2006 Cee gee (Talk | contribs) (New Discussion) ← Previous diff |
Revision as of 19:27, 12 May 2006 Foxttron (Talk | contribs) (I am not too cle) Next diff → |
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| {{ForumNewPost|UserID=Cee gee|Date=12 May 2006|Text=The third partner in a partnership (50%) ownership, has loaned the partnership 150K. The other two partners have only contributed 15K together and each have 25%. There is a large loss the first year. I am assuming that the loan made to the partnership is basis to all, in the ratio of ownership. It is a recourse loan. The 150K loan is the only contribution the third partner has put in. As the partnership pays the loan down, his percentage of ownership will also decrease until he is totally out of the partnership. I am | {{ForumNewPost|UserID=Cee gee|Date=12 May 2006|Text=The third partner in a partnership (50%) ownership, has loaned the partnership 150K. The other two partners have only contributed 15K together and each have 25%. There is a large loss the first year. I am assuming that the loan made to the partnership is basis to all, in the ratio of ownership. It is a recourse loan. The 150K loan is the only contribution the third partner has put in. As the partnership pays the loan down, his percentage of ownership will also decrease until he is totally out of the partnership. I am | ||
| questioning the losses taken against the 150K loan. When the third partner is decreasing his ownership and the loan is being paid off, is there income because the loan is loosing basis because of the losses taken against it. If there is income, would it be capital gain? L/T if over a year? Thank you}} | questioning the losses taken against the 150K loan. When the third partner is decreasing his ownership and the loan is being paid off, is there income because the loan is loosing basis because of the losses taken against it. If there is income, would it be capital gain? L/T if over a year? Thank you}} | ||
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| + | {{ForumReplyPost|UserID=Foxttron|Date=12 May 2006|Text=I am not too clear how the partnership is repaying this loan. It is generating taxable income and then distributing cash out to one partner to repay his loan? | ||
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Revision as of 19:27, 12 May 2006
Discussion Forum Index --> Tax Questions --> Partner basis
| 12 May 2006 | |
| The third partner in a partnership (50%) ownership, has loaned the partnership 150K. The other two partners have only contributed 15K together and each have 25%. There is a large loss the first year. I am assuming that the loan made to the partnership is basis to all, in the ratio of ownership. It is a recourse loan. The 150K loan is the only contribution the third partner has put in. As the partnership pays the loan down, his percentage of ownership will also decrease until he is totally out of the partnership. I am
questioning the losses taken against the 150K loan. When the third partner is decreasing his ownership and the loan is being paid off, is there income because the loan is loosing basis because of the losses taken against it. If there is income, would it be capital gain? L/T if over a year? Thank you | |
| 12 May 2006 | |
| I am not too clear how the partnership is repaying this loan. It is generating taxable income and then distributing cash out to one partner to repay his loan? | |
