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Karla

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About Karla

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    KS
  1. My question is... On the partnership 1065 , I have 2 guys that formed this partnership LLC several yrs ago with rentals and the like, in the last few yrs they started to flip houses as well. All has been pretty smooth until this yr. One of the partners has an uncle who has been loaning the "working capital" which the partnership pays him principal some interest after the flip sales. Well in 2019 he loaned 100,000 to partnership on a amortized schedule. The 2 partners each took 50,000 , which they called a loan so under the impression that it would not be taxable to them as they were paying the uncle bac I explained that the partnership was paying back the loan as the loan was given to partnership. Yes the money given to partners is taxable. I have also asked what the 100,00 loan was for per Uncle and why did he amortize it? So far that question has not really been answered. What when and where does the loan go if it doesnt really fit in any IRS rules and if it was used for guaranteed payments? I have spent hrs on this and would like some input please!!!
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