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Form 1065 B U S Return of Income for Electing Large Partnerships

Form 1065 B U S Return of Income for Electing Large Partnerships

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hello and welcome to this session in which we'll discuss the income allocation for a partnership first we need to review some basic concepts about partnership a partnership is not a tax paying entity so the partnership itself the partnership itself as a business don't pay any taxes the partnership is called a pass through or a flow through entity it means the income the deduction the gain the losses pass through or fall through flow through to the shareholders so we have the shareholders and they will get the income they will get the deduction so on and so forth however what we have to understand in a partnership is there are two steps in allocating income deductions expenses gains losses so on and so forth the first step is to compute net ordinary income that's associated with the business associated with business income business expense that is related to what the partnership is all about the partnership trade or business operation and for this type of income

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