Updated July 27, 2015
Tax Form 1065 K-1 Tax Preparation Chicago Illinois
Form 1065 is the Federal Partnership Return. Regular partnerships, along with Limited Liability Companies and Limited Liability Partnerships are reported on this return.
From a taxation standpoint, a partnership is nothing more than than two or more sole proprietorships put together. As such, the partnership return is nothing more than a conduit of taxable income or loss to your personal return via Schedule K-1.
The biggest problem generally caused by partnerships is the payroll taxes that they create. Social Security and Medicare taxes are currently 15.3% of a partner’s income. But here’s the problem. You will pay that 15.3% not only on the guaranteed payments coming out of the partnership, but also on your portion of the partnership profits, whether you have received the money, or not.
If you are having problems with your Tax Form 1065 K-1 Tax Preparation Chicago Illinois or have issues with your accounting in general, we would love to help. I enjoy hearing from my readers, and can be contacted at
Chris@AccountingSolutionsltd.com
Additional Accounting Articles and information on my firm can be found at
www.AccountingSolutionsLtd.com
Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.