How do i distribute the earnings to each partner in partnership? - Tax Forum - Tax Help Forum, Payroll Tax Forum, Business Tax Forum, Tax Questions, Free Tax Advice

1040EZ · 09-13-2008, 07:44 AM

Registered users do not see advertisement

partnership w/ 4 partners... how do i distribute the earnings to each partner? thanks for any help.

theCPA · 09-13-2008, 07:44 AM

Checks work well. but seriously are you asking about the money in the checking account or the profits from the partnership?

if it's the profits (or losses) the partnership files a 1065 and each partner gets a K-1

1040EZ · 09-13-2008, 07:45 AM

thanks. any good cpa's in sf?

HotMama · 09-13-2008, 07:46 AM

my cpa last year charged me $495. too expensive!

theCPA · 09-13-2008, 07:46 AM

That's very reasonable. You got a deal for four K-1s. Seriously, that's not out of line especially in SFO. Call him and beg to get on his schedule.

theCPA · 09-13-2008, 07:50 AM

Try some business software and learn a bit how it works.
If that scares you (depending how complex your business is, it is reasonable it might) then go see your $495 cpa and pay him to do his profession.

Skyhawk · 10-21-2008, 07:57 PM

You distribute net earnings to the partners according to the partnership agreement. If there is not a partnership agreement then the distributions are the same as the partnership interests, eg a 25% partners gets 25% of the partnership items. The distributions are reflected on form K-1 for tax purposes.