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Tax
Advantages of Partnerships
- Formation
Partnerships provide a single level of tax and distribution
flexibility in type, amount and timing, as well as providing owners
with limitations on their risks in some circumstances. Any type of
entity or individual can participate in a partnership. Partnerships
are wonderfully flexible instruments.
Operation
Partnerships file Form 1065, U.S. Return of Partnership Income, to
report information, such as income and deductions from the
partnership’s operations. The tax on the partnership’s income flows
through to the partners according to their interest in the
partnership. In general, the characterization of income takes place at
the partnership level, but the IRS has established some rules that
apply at the partner level. The Internal Revenue Service will issue a
revenue ruling soon to further address the issue of characterizing
income in the context of partnerships.
Termination
When exiting a partnership, a partner has numerous options. Some of
the exit strategies include incorporating the partnership and selling
all of the partner's interest to one of the other partners.
Partners should plan for an “optimal exit.-
- Please contact your Prangley
Marks professional if you would like to discuss the benefits of a
partnership to you and your business.
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Treasury
Sends $9.143 Million Stimulus Payments During Week of June 2
The Treasury Department sent out 9.143-million
stimulus payments during the week of June 2, amounting to $6.789 billion
paid. This brings the total to 66.576-million payments in the amount of
$56.831 billion through June 6. Nearly all of the direct deposit
payments were made by May 23, with the mailing of paper stimulus checks
set to increase in June once the mailing of regular tax refund checks
has been completed. For single filers, the minimum stimulus payment is
generally $300 and the maximum payment is $600. For joint filers, the
minimum stimulus payment is generally $600 and the maximum payment is
$1,200. An additional $300 payment is made for each qualifying child.
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TECH TIP WEEKLY: Cleaning Windows XP: Taming Web Cache Files: Part
1
- WHAT IS CACHE?
-
- Web browsers maintain what is
called a cache, an area of your hard drive where the browser
stashes recently stored Web pages and, more likely, recently stored
images downloaded while you travel through the Internet. If you
have a slow Internet connection, the cache is a necessity because it
prevents the need for downloading graphics every time you visit a
Web page. Visit once and the graphics are downloaded to the cache.
Visit the site again and the graphics are loaded from the cache,
eliminating the need to download them over the slower Internet
connection. (The cache is less useful if you’re using a high-speed
connection, simply because downloading graphics takes less time.)
-
- The problem is that if you
visit 30 Web pages, each with an average of 10 graphics, you end up
with 300 graphics images in your cache. Multiply that times a month
of browsing every day, and all of a sudden you have 9,000 graphics
in your cache.
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- NEXT TIME: PART 2 – CLEANING
CACHE