Two partners. Each invest 10k capital. Partner A loans 100k and third-party loans 110k. The third-party loan is guaranteed by both.

Year X1 60k ordinary income. 75k guarantee payment to partner B not included. STCL 5k, charity 2k, the business earned interest income 3k.

Year X2 ordinary income 42k including guaranteed payment to partner B. CG 2.5k, charity 3.5k, the business earned interest income 2.5k, 12k paid on loan from Partner A, 6k paid to third party loan, distribution of 3k to each partner.

How will each item flow through and be taxed to each partner if the general partnership and how if limited partnership (partner A general and partner B limited)

Answer rating: 100% (QA)

Partner A Partner B ThirdParty Capital 1000000 1000000 000 Loan 10000000 000 11000000 Guaran... View the full answer