Edsel Posted March 28, 2019 Report Posted March 28, 2019 FLP sold some timber. Partner "A" took the money for personal use. Partners B and C were not distributed any money although they have a percentage as well. Question: Did Partner A violated any rules, or can the shortage be distributed in Partners B and C in future years? Quote
Lion EA Posted March 28, 2019 Report Posted March 28, 2019 Start by reading the partnership agreement/operating agreement. 1 Quote
BulldogTom Posted March 29, 2019 Report Posted March 29, 2019 I don't know the answer to your question, but I would follow Lion's advice. Whenever one of my clients tells me they want to start a partnership with family members, or a FLP, I give them this advice: What ship doesn't float? A family partner SHIP. I hate these things because it never comes down to the business. It is always about the family, and I don't get paid enough to be a therapist. Tom Modesto, CA 2 Quote
michaelmars Posted March 31, 2019 Report Posted March 31, 2019 from a tax point of view, partnership distributions don't have to be equal as with an S corp 2 Quote
DANRVAN Posted April 1, 2019 Report Posted April 1, 2019 As preparer you report it as is and let them hash it out. Quote
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