Transfer assets before liquidating partnership www findchristiandating com

Capital account of each partner represents his equity in the partnership.

This treatment is for purposes of determining gross income and deductible business expenses only.When two or more individuals engage in an enterprise as co-owners, the organization is known as a partnership.This form of organization is popular among personal service enterprises, as well as in the legal and public accounting professions.Salary and interest allowances are guaranteed payments, discussed later.Capital account of a partner is decreased when the owner makes withdrawals of cash or property The partnership agreement may specify that partners should be compensated for services they provide to the partnership and for capital invested by partners.

Leave a Reply