Redemption: Section 736(a) Payments Here’s where things can get funky. When a partnership buys out a departing partner in a redemption, the parties [...]

Comparing A Sale And Redemption Of A Partnership Interest

People are the worst. Sure, they may seem OK at first, but dig a little deeper, and they’ll inevitably reveal horribly offensive views on everything from dog [...]

Partnerships: Two’s Company?

Can partners be employees? And should they? The answer, as in many other areas of the tax law: it depends. IRS Revenue Ruling (RR) 69-184 states, [...]

With Tax Break Set To Expire, Partnerships Should Consider Converting To C Corporations Before Year End

Subchapter C corporations are like pit bulls or prostate exams — they carry quite the stigma,  but they’re not nearly as bad as they’re made out to [...]

IRS Plans to Step up Audits of Small Business Partnerships

The head of the Internal Revenue Service’s small business unit said his division expects to move from focusing on audits of small corporations to [...]

Partnership or S Corp?

One concern is taxes; another is protecting assets. What's the best way to set up your business? Dear Norm, I am opening an art gallery and pottery [...]

The Dark Side of Flow-through Entities – Taxable Income Without Cash

You really should be careful about who you partner up with. Jose Martignon took a 40% interest in a partnership with Alejandro Vargas to open a restaurant [...]