Chapter 18 summary notes Chapter 18–Partnerships and Trusts Summarized version of chapter 18 to quickly read through and understand. Useful for reading over before exams and as a refresher.

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Department
Accounting & Financial Management
Course
AFM 461
Professor
Stanley Laiken
Semester
Fall

Description
Chapter 18 Partnerships 2 factors suggesting partnershipJoint and several liability with respect to debts incurred by the partnershipAn agreement indicating the method by which profits and losses are to be shared Partnership vs joint venturePartnership is a separate entity while joint venture is PART of the person o So if the owner wants to give assets to company it will need rollover where venture you do not o CCA is deducted by the partnership where ventures the OWNERS deduct the own portion of their assets cca Joint venture conditionsJoint property interest in the subject matterA right of mutual control and management of the enterprise A limitation of the objective to a single undertaking or a limited number of undertakings Partnership incomeIncome under division B is calculated at the partership level then divied off to owners based on contract to be TAXEDThat owner may take the incomelosses allocated to them and manage it with their OWN incomelosses offset partnership rental income with personal rental losses atrisk rules page1045Partnership allocations anti avoidance 1031you cannot allocate partnership incomeloss in a way that is to avoid taxeswhere partners do no deal at arms length each persons capital contribution work performed and other factors will be considered in determining a reasonable splitting computation of taxable incomecharitable gifts 11813 o deductible by partners who are corporations o individuals will include their share of the donation in their personal income taxlosses are not deducted by partnership but is split off to owners to carry in their tax returnsITA 111
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