Call Us(925) 307-5454
Did you know that a partnership gives you a special allocation as a tax planning tool?
For example, Partner 1 had a great year. Partner 1 needs losses to offset his/her income. The partnership decides to do a disproportionately large percentage of the losses to Partner 1 this year.
Next year, Partner 2 had a great year. Partner 2 needs losses to offset his/her gain. Partner 2 can receive a disproportionately large percentage of losses to offset the income.
After year 2, all partnership tax items are allocated in proportion to the partners' stated ownership percentages. The particular allocation phase of the partnership is over, and life goes on.
Both partners have saved tens and thousands of dollars in taxes.
Let's talk; book an appointment here.
Miguel A. Palma, CPA, PFS, CGMA
Founder of Palma Financial Services, Inc.
Palma Financial Services, Inc. ("PFS")has helped small business owners minimize income taxes and build wealth since 1998.
PFS has achieved positive results for its clients, but our top clients' successes are not typical. Because past performance is not a predictor of future success, you may have more or less success depending on many factors, including your background, experience, work ethic, client base, and market forces. Additionally, at times we may discuss the law or new and pending legislation. Please know our understanding of it is continuously changing. You cannot and should not rely upon these communications for legal, financial, or accounting advice. For the latest updates, set up a time here.