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FAQ / What percentage interest in Partnership A’s profit, loss or capital is to be reported on Form 1065 Schedule B question 3a and 3b, under the following facts?S corporations X and Y each own 50 percent of the profit, loss, and capital of partnership A. Jane owns 50% of X’s stock, and her brother Bill owns 50% of Y’s stock. Bill also owns 100 percent of a third S corporation, Z. A11: In response to question 3a, Partnership A reports that corporations X and Y each own directly or indirectly, 50 percent of Partnership A’s profit, loss, or capital. In response to question 3b, Partnership A reports that Jane and Bill each own, directly or indirectly, 50 percent of the partnership’s profit, loss, or capital. Both Jane and Bill, respectively, are considered to own 25% through their respective corporations. In addition, each is considered to own an additional 25% by family attribution, for a total of 50% each. Partnership A does not report with respect to Corporation Z because Z is not a direct or indirect partner of A. Keywords: corporation, |
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