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FAQ / What percentage interests in partnership X are individual partners A and B and entities W, Y, Z, and T considered to own for purposes of answering questions 3a and 3b of Form 1065, Schedule B for taxPartnership Y and trust T each own 50 percent of the profit, loss, and capital of partnership X. A owns 100 percent of disregarded entity W which owns 50 percent of partnership Y. B owns 100 percent of the beneficial interest of trust T. B is A’s wife. A also owns 100 percent of Corporation Z. A5: Partnership X reports in response to question 3a that partnership Y and trust T each own, directly or indirectly, 50 percent of the profit, loss, or capital of partnership X. Partnership X does not report with respect to W because W is a disregarded entity. Partnership X does not report with respect to Corporation Z because Z is not a direct or indirect partner of X. Partnership X reports in response to question 3b that A owns, directly or indirectly, 75 percent of the profit, loss, or capital of partnership X. A owns 25 percent indirectly through entities W and Y and owns 50 percent indirectly through family attribution from B. Partnership X reports in response to question 3b that B owns, directly or indirectly, 75 percent of the profit, loss, or capital of partnership X. B owns 50 percent indirectly through entity T and 25 percent indirectly through family attribution from A. Keywords: corporation, |
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