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Partnerships

Partnership accounting, profit sharing, and financial management

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Financial Infidelity When You Run a Business Together: A Transparency System for Co-Owner Couples

Bankrate's January 2026 survey found 43% of U.S. adults consider financial secrecy at least as bad as physical cheating, and 40% of adults in live-in relationships admit to a money secret. For couples who co-own a business, a hidden card or debt also distorts pricing, payroll and joint tax liability — here are the bookkeeping controls, monthly review cadence and entity rules that make transparency structural rather than voluntary.

mike

family-businesssmall-businessbookkeeping

How Real Estate Syndication Waterfalls Actually Pay You: Preferred Returns, Capital Calls, and Reading the K-1

A real estate syndication waterfall pays limited partners in four tiers — return of capital, a 6–10% preferred return, a sponsor catch-up, then a 70/30 or 80/20 residual split. This guide works the math on a $100,000 investment, explains capital-call dilution, why a K-1 can show a loss while you received cash, and lists ten questions to confirm before wiring money.

mike

real-estatepartnershipscarried-interest

Profits Interests, Explained: How LLCs Can Grant Equity Without Triggering a Tax Bill

A profits interest lets an LLC or partnership grant a service provider real equity with no tax at grant or vesting under Rev. Proc. 93-27 and 2001-43 — provided the distribution hurdle equals fair market value at grant, the interest is held two years, and the recipient accepts K-1 partner status. Here is how the safe harbor works, how the hurdle math is set, and the six mistakes that break the tax-free treatment.

mike

equity-instrumentsllcpartnerships

Community Property Trusts: How Business Owners in Any State Can Get a Full Basis Step-Up

Alaska, Tennessee, Kentucky, Florida, and South Dakota let married couples in any state opt into community property treatment through a trust, so the entire asset — not just half — gets an IRC Section 1014(b)(6) basis step-up at the first spouse's death. What business owners should know about Section 754 elections, the one-year gift trap under Section 1014(e), and the unresolved IRS guidance.

mike

estate-planningtax-planningcapital-gains

Connecticut's New R&D Tax Credit for LLCs and S Corps: What Public Act 26-68 Means for Small Businesses

Connecticut's Public Act 26-68, signed May 26, 2026, gives pass-through entities — LLCs, S corps, and partnerships with gross income under $70 million — a 6% R&D tax credit for the first time, refundable at 65% (90% for biotech), capped at $1.5 million per business and $25 million statewide, and claimed through a DECD voucher within 90 days of year-end.

mike

tax-creditssmall-businesstax-planning

How Should States Tax Partnership Income? Inside the MTC's Blended Apportionment Proposal

The Multistate Tax Commission's January 2026 white paper proposes a "blended" apportionment method that folds a partnership's sales, property, and payroll factors into each partner's own state tax calculation. Because states currently split between aggregate and entity sourcing theories, the same partnership dollar can be taxed twice — or not at all. Here's what multistate partnerships and multi-member LLCs should track now.

mike

taxmulti-state-taxpartnerships

When a Deficit Restoration Obligation Isn't One: What CCA 202628009 Means for Partnership Loss and Liability Allocations

IRS Chief Counsel Advice CCA 202628009 (July 10, 2026) held that a demand-based deficit restoration obligation enforceable only by withholding future distributions is not unconditional, failing both the §1.704-1(b) economic-effect safe harbor and the §1.752-2(b) recourse-liability test — a fact pattern common in family LP boilerplate that can reallocate recourse debt and suspend previously deducted losses.

mike

taxpartnershipstax-compliance
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