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Post Info TOPIC: Partnership Taxation
QBE Book-Keeping


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Partnership Taxation
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Can somebody explain Partnership Taxation?

I think that the Partnership is not liable to tax, but each partner is taxed on their share of any profit. Is this correct?

If this is correct, then my Partnership has made a small loss, they will not be taxed. Correct??

With regards drawings they have made, can this be offset against any capital investment they initially made for start up costs and building costs?



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Rob Wilde
YLB-HO


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The partnership itself will not pay tax - but the partners may depending on their personal circumstances.

A partnership has to complete a tax return to show the division of profit or losses and how it is to be treated for the partners.

Its up to the partners how they want to treat their drawings. Again this is normally shown in the accounts to make it clear, and of course dependant on the partnership agreement inrespect of the capital investments.

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Frauke
BKN Book-keeper of the year 2011
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