part year - 4+ returns?

[WITAXLADY]

client has a real estate/rental partnership with 1 other

joins up with another 1065 as the 3rd partner

and then 2 of those 3 join the sole Sch E as a 3 way 1065

so we have 3 1065's at year end.

all 3 same people

However, at the beginning of the year - we had 2 1065's and a single Sch E until Oct 1

So am I doing 6 returns? to figure out %'s and depreciation?

Thx

[Lee B]

I must say that you have the most interesting client tax situations 

Where do you find these people ?

 

[Abby Normal]

51 minutes ago, WITAXLADY said:

a 3 way

[michaelmars]

My son, still in college has a NY residence, is a teachers assistant in Indiana, worked summer of 2019 in Massachusetts, and in January 2019 he got paid for his unused PTO from summer of 2018 job in Arizona.  A college kid had to file in 4 states.  I enclosed a discounted invoice of $675.

A few days later I got a text, "are you out of your friggen mind?".  I responded with , oh good you got it, sending An invoice was a sure way to know he received it and cheaper than sending certified or UPS.

[DANRVAN]

On 4/29/2020 at 10:33 AM, WITAXLADY said:

So am I doing 6 returns? to figure out %'s and depreciation?

There are a some options which can lead to very different results in the amount of income reported to the partners.

The interim closing method is the default method where the books are basically closed upon entry and or exit of partners.

As an alternative, the partners can chose to use the proration method where an allocation is made based on the number of days each partner held an interest for the year.

Also there are exceptions which allow for use of any reasonable method under certain circumstances.

See reg 1.706-4 for details.

[WITAXLADY]

Thank you!!

And the client is my 28 year old nephew who quit his $130,000/yr job to manage them (all 3 partners younger)

and is paid by you tube for videos such as jumping over a bench in his underwear and shooting guns off!!

I would not say he is a redneck... high IQ tho..

and nice

[Lion EA]

Do any or all of the partnership operating agreements specify what method to use when a partner joins or leaves that partnership?