Edsel Posted March 28, 2019 Report Share Posted March 28, 2019 FLP sold some timber. Partner "A" took the money for personal use. Partners B and C were not distributed any money although they have a percentage as well. Question: Did Partner A violated any rules, or can the shortage be distributed in Partners B and C in future years? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 28, 2019 Report Share Posted March 28, 2019 Start by reading the partnership agreement/operating agreement. 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 29, 2019 Report Share Posted March 29, 2019 Might be a job for attorney. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 29, 2019 Report Share Posted March 29, 2019 I don't know the answer to your question, but I would follow Lion's advice. Whenever one of my clients tells me they want to start a partnership with family members, or a FLP, I give them this advice: What ship doesn't float? A family partner SHIP. I hate these things because it never comes down to the business. It is always about the family, and I don't get paid enough to be a therapist. Tom Modesto, CA 2 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 31, 2019 Report Share Posted March 31, 2019 from a tax point of view, partnership distributions don't have to be equal as with an S corp 2 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted April 1, 2019 Report Share Posted April 1, 2019 As preparer you report it as is and let them hash it out. Quote Link to comment Share on other sites More sharing options...
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