20 Jul Characterizing Partner Distributions
Posted at 00:00h
in Cost Basis, Distributions, Investment Income, Retirement, Small Business, Tax Guidance & Preparation, Taxable Income
Generally if payments are in exchange forpartnership property, the amountreceived in excess of the partner's outside basis in his/her partnership interest is taxed as capitalgain. Howeverif thepayments represent a distributiveshare of partnership income or aredeemed to be guaranteed payments,the payments are taxed as ordinaryincome. According to...