partnership

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Partnership

Shared ownership among two or more individuals, some of whom may, but do not necessarily, have limited liability with respect to obligations of the group. See: General partnership, limited partnership, and master limited partnership.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Partnership

A business structure in which two or more persons share in the ownership and profits and losses of the business. There are three main types of partnerships. In general partnerships, two or more partners, jointly and severally, share all profits and losses, management authority, and risk for the business. In a limited liability partnership, partners share profits and losses and divide management authority according to the company's specific structure. In case of liquidation, every partner is only liable for the amount he/she has invested in the company, much like a stockholder in a corporation. Limited partnerships have elements of both the previous structures, having both general partners and limited partners. General partners in a limited partnership must share a certain amount of profit and financial liability with limited partners according to an arrangement between them. In this situation, general partners have all management authority and unlimited liability, while a limited partner is only liable for his/her investment.

In most jurisdictions, partnerships are preferable to corporations because partnerships' profits are not taxed prior to distribution to the partners. In other words, there is no equivalent to a corporate tax on partnerships. On the other hand, partners have more legal and financial liability in case of liquidation than would shareholders and most management in a corporation.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

partnership

A business owned by two or more people who agree on the method of distribution of profits and/or losses and on the extent to which each will be liable for the debts of one another. A partnership permits pass through of income and losses directly to the owners. In this way, they are taxed at each partner's personal tax rate. Compare corporation, proprietorship. See also general partnership, limited partnership, silent partner.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

partnership

a BUSINESS owned and controlled by two or more persons who subscribe capital and share decision-taking as specified by a partnership agreement. Generally partners have unlimited liability for any debts incurred by the partnership and any of them may enter into contracts on behalf of the partnership. Partnerships are particularly prevalent in professional services, for example accounting, surveying and insurance. See SLEEPING PARTNER, SOLE PROPRIETORSHIP, JOINT-STOCK COMPANY, LIMITED LIABILITY.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

partnership

see FIRM.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

partnership

A legal relationship between two or more persons, each of whom may act as an agent for the partnership and legally bind it and the other partners.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Partnership

A form of business in which two or more persons join their money and skills in conducting the business. Partnerships must file a return but are not subject to tax. Each partner reports his or her share of the partnership's income, gains, losses, deductions, and credit on his or her individual return.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
New Code section 1061 would provide that, upon the transfer of an applicable partnership interest to a related person, the transferor must include short-term capital gain equal to the excess of--(1) the taxpayer's long-term capital gain with respect to such interest for such tax year attributable to the sale or exchange of any asset held for not more than three years as is allocable to such interest; over (2) any amount already treated as short term capital gain under the primary provision with respect to the transfer of such interest.
* The tax treatment of worthless or abandoned partnership interests differs from that of worthless or abandoned stock or securities.
Similarly, under the new law a portion of any gain on the disposition of an investment services partnership interest would be taxed as ordinary income, and the holder would be required to recognize such gain without regard to any other income tax provision.
The mandatory adjustments and accounting are required for each transfer of a partnership interest where a substantial built-in loss is present, a significant record-keeping burden for the partnership.
Commissioner decision,(1) where the Court of Appeals held that a partner can claim a loss for worthlessness of his partnership interest without having to abandon or dispose of it.
If the transferred partnership interest is a capital interest, the liquidation value is often assumed to establish the interest's fair market value (FMV).
One of the more difficult issues in the transaction is determining the value attributable to each partnership interest, and the number of REIT shares for which such partnership interest is redeemable.
Determining a partner's holding period in a partnership interest and the partnership's holding period in contributed property: On March 1, L, D, and M formed A Hardware, a general partnership, to conduct a small retail business.
2503(a) and whether a gift of a partnership interest is itself entitled to the benefit of the annual gift tax exclusion.
The fact pattern of the TAM was based upon a childless widow who transferred limited partnership interests to various family members.
However, for several reasons, investors cannot use a tax deferred exchange to sell their respective partnership interests independently of the partnership and use the proceeds to reinvest in other real estate in a [section]1031 exchange.
The Kimbell appeal arose after the District Court granted a summary judgment for the IRS and denied the taxpayer's summary judgment request over the issues of whether or not the transfer of property to an FLP formed two months prior to death, in exchange for partnership interests, was for full and adequate consideration and whether or not the decedent had retained control under IRC Sec.

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