User talk:LemRI

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Dear Lem RI, You helped me with the following a while back. I have a follow up question:


Pacdallas (talk|edits) said: 20 October 2008 I have a question about how to book distributions in a newly formed LP in QB. When the partners gave their initial investment cheks, I credited each partner's equity account, Equity P1, Equity P2 and so on. Now that the business is making money there is going to be a series of pay-outs to each partner that will total well in excess of their investment. What will be the accounting treatment of these payments? Are these going to partner's K1 or 1099? Thank you for you help.

LemRI (talk|edits) said: October 20, 2008 For accounting purposes -- income will probably flow into "Retained Earnings" in QB. Year end, you can do a journal entry to distribute these (based on their percentage of ownership) to P1 Earnings, P2 Earnings. This will zero out Retained Earnings For tax purposes -- the LP earnings will be reported on K1. 1099s are for contractors, not partners.


The K1's for these partners show payments they received in 2008 minus their investment. For example, there are five of them each invested $5000. The business generated surplus of $100,000 which was distributed per their % of ownership, ie $20K each. This is the amount shown on each of their K1's. But the actual payout to each was $25K each. Is this correct?

I am sorry for the imposition as I realize it is a busy time of year. I appreciate your timeAbdul 21:03, 19 February 2009 (CST)

Hello LemRI,

I have the same question you asked in 2011, and that unfortunately no one answered. I am preparing a partnership return and the personal tax returns for a two member LLC. They have UPE, so when I calculate the maximum allowed SEP IRA contribution in the LLC return I get a higher contribution than if I calculate it using the UPE.

Did you find your answer? I am in the process of preparing the 2013 return, so I can change the amounts.

Thank you, Lalva 00:28, 19 March 2014 (UTC)

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