ILLMAS Posted January 8, 2015 Report Share Posted January 8, 2015 Scenario: TP was invited as a partner for a one time event, if the event had a profit he would get 1/3, unfortunately the event had a loss. TP only invested his time and access to his connections in the entertainment industry, how does one account for this? There is no formal K-1, he only received a spreadsheet of the revenue and expenses for the event, TP operates a corporation, all the promotion was made on behalf of his company website. Thanks MAS Quote Link to comment Share on other sites More sharing options...
Max W Posted January 8, 2015 Report Share Posted January 8, 2015 If there was nothing at risk, there can be no loss. To paraphrase -"Nothing risked, nothing lost". Quote Link to comment Share on other sites More sharing options...
Lee B Posted January 8, 2015 Report Share Posted January 8, 2015 It sounds like you're saying that he spent no money. If so, no deduction. I assume that any funds related to to the website were paid for and deducted by the business anyway. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted January 8, 2015 Author Report Share Posted January 8, 2015 There was small expenses he paid from corporation which are being deducted already, but the big expenses were paid by the other partners. This arrangement is so confusing, now to break the news to the TP, thanks everyone. Quote Link to comment Share on other sites More sharing options...
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