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- When figuring weighted percentage of partnership allocations for a 1065, if the company started in March, what dates would you use?
When figuring weighted percentage of partnership allocations for a 1065, if the company started in March, what dates would you use?
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elizabeth-birds
Level 2
02-13-2020
05:32 PM
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Also, there were some changes in ownership and a member of the LLC left.
For example,
1/1/19 - 3/4/19 : $0 [technically 0, because LLC didn't begin until March?]
3/5/19 - 8/1/19 : $1000 [Owner left on 8/1/19]
8/2/19 - 12/31/19 : $0 [Since owner left on 8/1/19]
My other thought is that since the tax year starts on 1/1/19, then their should just be two periods. But then the percentage is off a little, since it adds the extra days before the company started.
Thank you!
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1 Comment 1
linette
Level 5
02-15-2020
04:32 PM
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How did partnership start 1/1 if LLC (which is the partnership) didn't start until Mar?
There should be documents showing dates. ie: registration and acceptance of the LLC, partnership agreement, etc. that will leave a trail for what happened.
With that said, I would apply common sense and dollars.
You can rack up a lot of time trying to figure out the allocation for just a few dollars difference so does it matter?
Also, look to the taxpayer and the books to see how accurately things are being reported in regards to dates anyway?
Taxpayers often don't know they need to split the books in situations like this and they don't take that into consideration. If they did it would make this easier.
