Tax Aspects of Partnerships Research Paper example
Masters
Research Paper
Finance & Accounting
Pages 5 (1255 words)
Download 0
[ your name ] [ Professor’s name ] [ Course name / number ] [Publish Date] Tax Aspects of Partnerships Taxation law regarding partnerships in the United States tends to treat partnerships as flow through entities. Consequently, the entity in itself is not liable to tax payments but instead, the owners of the entity are liable to taxation depending on their ownership of the subject entity1 2…

Introduction

This paper will explore the various dimensions of taxation as applied to partnerships in the United States. The material in this paper is not intended as a treatise but rather as a brief explanation of the matter only. The major rules dealing with taxation in partnerships are enshrined in the United States Internal Revenue Code under Chapter 1, sub Chapter K. However, the application of K-1 rules is subservient to declarations of partnership under Form 1065 that documents the various transactions of the partnership entity4. The aim of the method is to ensure that the declarations of income and transaction presented by the entity in question are verifiable against the partners’ declarations. Individually, the partners are provided with K-1 schedules that they need to fill out on their own to report their personal income levels. However, this is far easier said than done since the partners may be involved in more than one entity and it may not be simple to segregate incomes from various entities among other problems. The first step in calculating applicable taxes is to measure the income attributable to the overall partnership5 and then for this income to be segregated as per the various partners. ...
Download paper
Not exactly what you need?

Related papers

Tax assignment
They include Income Tax, Corporation Tax, Duties on goods and services, National Insurance Contribution, Value Added Tax and Fuel Duty. All these taxes have different laws and guiding principles. This paper examines the main rules that govern Income Tax and Corporation Tax. It outlines the main components of these taxes and the obligations of the taxpayer in fulfilling his obligations to HMRC.…
FINANCE AND ACCOUNTING
Memorandum …
Tax Reform Essay
Common Tax Loopholes In principle, the US has one of the highest rates of corporate tax globally. However, in practice, US corporations pay low taxes. The Government Accountability Office estimates that the average tax burden is 25.2% because corporations use loopholes to escape taxes. This lack of tax payment emanates from the many exceptions and loopholes in the US tax code (Reinhart, 2008).…
Assignment 3: Tax Credits
Tax credits are neutral and enable the Congress in making certain that specific taxpayers get tax credit as concerns marginal tax rates (Cordes, Ebel, & Gravelle, 2005). This purpose is still relevant for today’s taxpayer because the economy of the country has continued to deteriorate over the years. As such, individual and businesses still need protection from harsh economic times. Fairness of…
Income Tax (IAS12)
Their main agenda was to look at critical issues of accounting for corporate income in an attempt to develop a discussion paper on the principles of IAS 12 and set out proposals. IAS 12 prohibits companies to give an account to deferred taxes by using the deferral method based on the income statement. It instead prefers the passive methodology based on the balance sheet. In addition to the above…
Accounting for Income Tax
In the same way, the recognition of deferred tax liabilities and assets in combination of an entity has implications on the extent of goodwill that is realised in the recognised bargain purchase gain or in such an entity combination. Other areas that are dealt with by this standard include the recognition of differed tax assets that are generated from unused tax credits or unused tax losses, and…
Assignment 4: Estate Tax
Looking at the figure of 2010 fiscal, the estate tax returns amounted to 0.02% of the total tax return with huge losses in tax revenue. Currently, IRS has modernized tax collection methods and has three computerized tax collection centers apart from ten other tax collection centers. The centers receive returns over mail and compile the returns at their end. The current level of interest and audit…