Nonprofit Partnership: Detailed Guide A nonprofit partnership refers to a collaborative relationship between two or more nonprofit organizations, or between a nonprofit and a different type of entity (such as a government agency, educational institution, or private business), that is formed to accomplish a shared mission or community-oriented goal. Unlike…
Publicly Traded Partnerships: What Every Investor Should Know? A Publicly Traded Partnerships (PTP) is a business entity that is organized as a partnership but whose interests (units) are traded on public exchanges, much like stocks of corporations. These entities are generally taxed as partnerships for federal income tax purposes, even…
What is the Michigan Flow Through Entity Tax? An Essential Guide Michigan Flow Through Entity Tax is an elective state-level income tax that allows certain pass-through businesses—such as partnerships, S corporations, and limited liability companies (LLCs)—to pay Michigan income tax at the entity level, rather than having the tax assessed…
Unlocking The Detailed Guide On Schedule K1 Form 1065 Schedule K1 Form 1065 is an informational tax document that a partnership uses to report each partner’s share of income, deductions, credits, and other tax items. This form is an attachment to IRS Form 1065, which is filed annually by partnerships…
A Guide To Unlock NJ 1065 Instructions Form NJ-1065, issued by the New Jersey Division of Taxation, is the partnership return used to report income, gains, losses, deductions, and other financial information from partnerships doing business in New Jersey. This applies to structures like general partnerships, limited partnerships, limited liability…
What Is Waterfall Allocations?- A Must Read Guide Waterfall allocations is a structured method for distributing profits among participants in an investment partnership, such as private equity, real estate syndications, and venture capital funds. The distribution occurs in tiers or “levels,” and each level must be fully satisfied before profits…
Overview of Form 1065 as the U.S. Return of Partnership Income Form 1065 is the official tax return used by partnerships to report their financial activity to the Internal Revenue Service (IRS). It is not a tax payment form; instead, it acts as an informational return for pass-through entities such…
A Complete Guide to New York Pass-Through Entity Tax for Business Owners The New York Pass-Through Entity Tax (PTET) is an optional tax system created as part of the state’s strategy to address the federal cap on state and local tax (SALT) deductions. Enacted in 2021 under Article 24-A of…
The Pass Through Entity Elective Tax (PTET) is a state-level tax mechanism that allows certain businesses classified as pass-through entities—such as partnerships, S corporations, and limited liability companies (LLCs) treated as such—to elect to pay state income tax at the entity level rather than at the individual owner level. This…
The California Pass Through Entity Tax is a state-level elective tax designed to help owners of pass-through entities, such as partnerships, S corporations, and LLCs treated as partnerships. In order to lessen the impact of the federal $10,000 cap on state and local tax (SALT) deductions, owners of pass-through companies,…