Ned, Opie and Paul are equal partners. The partnership is cash basis taxpayer and uses the interim closing of the book's method. On October 1, Quinn joins the partnership, and the four become equal partners. On March 1, the partnership paid $30,000 in salaries. On November ,1 the partnership paid $10,000 to an independent contractor for consulting services. How is the deduction for the salary and payment for consulting services allocated among the partners? Please fully explain the tax analysis used to reach your conclusions.

Answer rating: 100% (QA)

In a partnership deductions such as salaries and payments to independent contractors are allocated a... View the full answer