Analyzing Tax Returns: Partnerships

Another common type of business, the "Partnership" has specific tax implications of its own which may have a bearing on a family law case in determining income available forchild support and/or spousal support. Family Law News sums it up as follows:

"Owners of Partnerships are taxed as self-employed individuals based on their Partnership ownership percentage. Like an S-Corporation, partners receive a Schedule K-1 reflecting their pro rata share of the Partnership net income. However, Partnership income is subject to self-employment tax whereas S-Corporation income is taxed only as ordinary income. Distributions on Partnership K-1s are reflected on Line 19 and marked with an 'A.""

Internet Marketing Experts

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.