Why Accuracy Matters in Making Partnership Income and Loss Allocations
One of the main advantages of structuring a business venture as a partnership is the flexibility afforded to the partners in creating their economic arrangement. However, from a tax perspective, the tradeoff for this flexibility is considerable complexity in the partnership taxation rules in the Internal Revenue Code and unintended negative consequences if partnership allocations of income and losses fail to comply with IRS requirements. BDO’s National Technical Practice Leader for Partnership Taxation, Jeff Bilsky, recently bylined an article in the Journal of Taxation discussing partnership income and loss allocations. Check out key takeaways and download the full article below.
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