partnership report

7/23/2019 Partnership Report

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PARTNERSHIP


2/12

PARTNERSHIP

By the contract of partnership, two or more persons binds toether to contrib!te money, property or ind!stry to a cowith the intention of dividin the pro"ts amon themselves

Two or more partnership may also form a partnership for tha profession


3/12

%&ASSI'I%ATI(N (' PARTNERSH

Based on liability of partners

a# )eneral partnership

b# &imited Partnership

Based on Ta$ation

a# )eneral professional partnership

b# )eneral co*partnership#


4/12

Based on liability of partners

)eneral partnership + partnership created and operated wpartner#

)eneral partner + is one whose liabilities or obliations are noto hisher capital contrib!tions# %reditors have the riht to opersonal properties of the eneral partner in the event of the

ban.r!ptcy#

&imited partnership + is a partnership consistin of a enerand a limited partner# A partner is considered limited whenliability is limited only to hisher capital contrib!tions# In thpartnership-s dissol!tion and partnership is insolvent, the ccannot o after the personal properties of a limited partne


5/12

Based on Ta$ation

)eneral professional partnership + is a partnership formedp!rpose of e$ercisin the partner-s common profession andincome of which is derived from enain in any trade or b

)eneral co*partnership + is a partnership created for the pobtainin pro"ts from the cond!ct of trade or b!siness#


6/12

)ENERA& PR('ESSI(NAPARTNERSHIP

A eneral professional partnership /)PP0 is formed by persp!rpose of e$ercisin their profession#

)PP is not a ta$able entity since it acts only as a 1pass throwhere its income is "nally ta$ed to the partners comprisin

A eneral professional partnership e$empted from income still re3!ired to "ne an income ta$ ret!rn for the p!rpose o

proper information on the share of each partner# The net income of )PP, for p!rposes of comp!tin the dist

of the partners, shall be comp!ted in the same manner as


7/12

Ta$ &iability of Partners in a)eneral Professional Partner

The followin !idelines determine the ta$ liability of a partneprofessional partnership

4# Each partner shall report as ross income hisher distrib!tiact!ally or constr!ctively received, in the net income of th

5# The partners in a )PP shall be liable for income ta$ only inseparate and individ!al capacities#

6# (n the partner-s distrib!tive share in )PP, the individ!al paclaim ded!ctions inc!rred or paid by himher s!b7ect to theconditions


8/12

If the )PP !ses the itemi8ed ded!ctions, the partners may itemi8ed ded!ctions from the partnership-s share# Howeveprecl!ded from claimin the same e$penses already claim

If the )PP avails of itemi8ed ded!ctions, the partners are n

claim the (S9 form their share in the net income of the )Pthat the (S9 is in lie! of the items of ded!ctions claimed band the partners#

If the )PP avails the (S9 in comp!tin its net income, the no loner claim f!rther ded!ctions from their share in the the )PP

The method of ded!ctions on other ross income of the pa

from trade, b!siness or practice of profession wo!ld followded!ction availed of from )PP-s distrib!tive income#

If the )PP opts for the (S9, a partner may also !se the (ross income from trade, b!siness or e$ercise of profession, bincl!de hisher share from the net income of the )PP#


9/12

The distrib!tive share of the partners in a )PP shall be s!bcreditable withholdin ta$ based on the followin rates

4:; * share in the net income is P


10/12

)ENERA& %(*PARTNERSH

A eneral co*partnership !nli.e a eneral professional partta$able entity#

Ta$ &iability of a Partner In %o*partnership

The followin !idelines shall be observed in determininliability of a partner in a eneral co*partnership>

4# A eneral co*partnership is ta$able on its income li.e a cor

5# The share of a partners in a eneral co*partnership s!b7ecttreated li.e a dividend, that is, the share is also s!b7ect to


11/12

Prob 4

T?) and %ompany is a eneral professional partnership, w?acariola and )arcia participatin e3!ally in the income a

The followin are the data for the partnership and the partcalendar year

T?) TABA) ?A%ARI(&A )AR%

)ross Income =? 6#=? 5? 5#

E$penses 6#


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4# How m!ch is the table income of the PartnershipC

5# How m!ch is the distrib!tive share of each partners in the )PC

6# How m!ch is the ta$able income of TabaCD# Ass!me the partnership is a commercial partnership, how

ta$able income of the partnershipC

=# Ass!me the same ass!mption in !estion FD, how m!ch iincome of )arciaC

# Ass!me the same ass!mption as in !estion FD, how m!cdistrib!tive share of each partnerC

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