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Tag Archives: partnership capital account

The verdict

Posted on June 11, 2010 by John

“It means that on the $50 Million of negative capital account you owe ordinary income taxes at your rate. Since this is 2011, you owe them at 39.5%. That translated into $19.75 Million. You also owe capital gains taxes, that translates into $20 Million dollars. You also owe state taxes that translates into $8 Million. So that’s $48 Million dollars. Subtract out the debt of $50 Million. That leaves untaxed $52 Million to be divided among your family members. The family trust gets the entire $52 Million. That means that you won’t see the money until your momma dies. And then you have to divide what’s left among your siblings.” “Oh, that’s pretty bleak” said Delicious.

Posted in income tax | Tagged income tax, partnership capital account, Section 1022 | Leave a comment |

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