Why Every Private-Equity Deal for a CPA Firm Splits Into an Attest and a Non-Attest Entity
US law bars non-CPAs from owning an attest practice, so every CPA-firm PE deal splits in two — and only 30–50% of the headline price is cash at close.
#partnerships
Partnerships
Partnership accounting, profit sharing, and financial management
Your K-1 Item L Capital Account: Negative Balances and Why It Never Matches Your Basis
Item L reports tax-basis capital, not your outside basis — the IRS excludes partnership debt, so a negative ending balance is usually arithmetic, not alarm.
The Equity Method of Accounting, Explained: How to Book a 20–50% Ownership Stake
Under ASC 323, dividends from a 20–50% stake are not income — they reduce the investment. Here are the three journal entries and the basis-difference trap.
Joint Interest Billing for Small Oil and Gas Operators: How COPAS Rules Decide Who Pays for the Well
A COPAS joint interest billing audit window closes 24 months after the calendar year ends — check overhead rates, AFE overruns and your decimal before it shuts.
Missouri's PTET Election in 2026: A SALT Parity Act Guide
Missouri's SALT Parity Act lets partnerships and S corps pay tax at the 4.7% top individual rate on Form MO-PTE, moving the deduction past the federal SALT cap. Here are the 2026 rules, deadlines, and filing traps.
Married and Running the Business Together? How the Qualified Joint Venture Election Splits Your Tax Filing in Two
A married couple co-owning an unincorporated business is taxed as a partnership by default, but the qualified joint venture election lets each spouse file a separate Schedule C and Schedule SE instead — no Form 1065, and both spouses earn Social Security credits. Both spouses must materially participate, and businesses held in an LLC or corporation cannot use it.
The Per-Partner, Per-Month Late-Filing Penalty: What a Late 1065 or 1120-S Really Costs You
A late Form 1065 or 1120-S costs $255 per owner per month for up to 12 months under IRC 6698/6699 — even when the entity owes zero tax. Here is how the math works, why first-time abatement does not apply, and how Revenue Procedure 84-35 can zero out the bill for partnerships with 10 or fewer partners.
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.
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.
The Co-Founder Prenup: Money Questions to Settle Before Your First Dollar Moves
A co-founder prenup records capital contributions, equity splits, vesting, spending authority, salary triggers, and exit terms before the first dollar moves — Carta data shows only 45.9% of two-founder startups incorporated in 2024 split equity equally — and maps each decision to ledger entries your accountant can verify.
USDA Just Let Your Farm's LLC Stack Payment Limits — but Only If Your Books Prove It by September 15
USDA's June 2026 final rule lets farm LLCs and S corporations claim one ARC/PLC payment limit per actively engaged owner — up to $164,000 per person for 2026 — but only if entity structure, per-member contributions, and farm/non-farm income splits are documented with FSA by September 15, 2026. Here's the bookkeeping that proves it.
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.