Unit 10: Partnerships in General

Question 1

A partnership must file a tax return unless it has:

Answer 1

neither any income nor any expenditures that would be treated as a deduction or credit for the year.

Question 2

1065

Answer 2

Used by the partnership to report any income or losses

Question 3

When is a 1065 due?

Answer 3

The fifteenth day of the third month following the close of the tax year

Question 4

7004

Answer 4

Used to request a 6-month extension for most business returns

Question 5

Partnerships with 100 or more partners must

Answer 5

File electronically

Question 6

1065 late filing penalty:

Answer 6

$220/month, per partner, for a max of 12 months

Question 7

Failure to furnish K-1 penalty:

Answer 7

$290 per each late-filed K-1

Question 8

Limited partners are subject to SE tax only on:

Answer 8

Guaranteed payments for services rendered to the partnership

Question 9

The term “partnership agreement” refers to:

Answer 9

Any written document or oral agreement that bears on the underlying economic arrangement of the partners, including allocations of income, gain, loss, deductions, and credits

Question 10

Examples of partnership agreement documents:

Answer 10

• Loan and credit agreements
• Assumption agreements
• Indemnification agreements
• Subordination agreements
• Correspondence with a lender concerning the terms of a loan
• Loan guarantees

Question 11

A QVJ is a trade or business where:

Answer 11

• The only owners of the joint venture are a married couple who file a joint return
• Both spouses materially participate in the trade or business
• Both spouses elect not to be treated as a partnership

Question 12

Partnerships: Startup amounts that are not deducted as a current expense can be:

Answer 12

Amortized ratably over a period of 180 months

Question 13

Does 199A deduction include guaranteed payments made to a partner?

Answer 13

No