Question: Jane is a Partner in a partnership with a July 31 year end. What information does she use to calculate the Sec. 199A deduction she claims on her 2018 Form 1040, U.S. Individual Income Tax Return? Short Answer: Jane uses the information from her partnership Schedule K-1, Partner’s Share of Income, Deductions, Credits, etc., for the year ended […]
Partnerships
4 Lessons from the Startup World That Will Benefit Your Small Business
When you’ve been in business for some time, it’s hard to remember what it was like when you were first starting out. In some sense, it’s much safer and easier to rest on your laurels than to have to risk inventing something new. But the truth is, inside every established business is a start-up waiting […]
How Organizations Are Classified as Partnerships
An unincorporated organization with two or more members is generally classified as a partnership for federal tax purposes if its members carry on a trade, business, financial operation, or venture and divide its profits. However, a joint undertaking merely to share expenses is not a partnership. For example, co-ownership of property maintained and rented or […]
Going into Business with Your Best Friend: A Good Idea or Potential Problem?
My best friend and I would lock ourselves in my tiny, yellow room in Brooklyn, sitting on my bed with a hundred pieces of paper around us, quietly and carefully plotting how we would launch our business. This was an exercise we had done several times during the course of our 15-year friendship, but this […]
Family Business: Partnership Mergers
In any successful family business there will likely come a time when descendants will want to take over the business from the older generation of owners. Usually, this will require that entities will need to be split into different business entities to accommodate both differences between the descendants (perhaps the descendants can’t cooperate with each […]
Building a Successful Business is Harder without Trust
It probably goes without saying that without trust in your partners, your employees, or the people you rely on for parts or supplies, building a business is exponentially more difficult. As a small business owner, I’ve had partners I trusted, partners I’ve respected, and one or two who lost my trust. So when Lynda Bekore […]
Why Marriages and Businesses Fail: A Love Story
In his speeches about strengths and weaknesses, thought leader David Rendall frequently tells the story of Brenda, a detail-oriented young lady, who falls in love with Eddie, a free-spirited young man. Brenda is the consummate ringleader. She is a planner, a gifted organizer who manages every detail and thinks deeply about every decision. She’s the sexy […]
5 Things to Consider Before You Jump into a Partnership
Pooling your talent with someone else is not a bad idea. Many people do it because of the uncertain business climate, and there are many advantages of taking your business forward with a partner. The biggest benefit you have is that you’ll get an opportunity to enjoy shared resources and complementary talent to achieve your […]
7 Partner Relationships That Can Kill a Good Startup
Most entrepreneurs who start a company alone soon come to the conclusion that two heads are better than one – someone to share the workload, the hard decisions, and the costs. In a moment of crisis, you may be tempted to take on the first person expressing interest as a co-founder. This would be a […]
Press Release Partnerships: Worth the Effort?
Many of us make it a priority to find and partner with companies that can add to our offering or extend our reach. And we rightly celebrate each such pairing, often with a mutual press release. And sometimes that’s all we end up doing. Call it a “press release partnership.” Or an opportunity missed. Or […]