New York Partnership Tax Preparation
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Partnership Tax Preparation
Partnership tax preparation requires careful coordination between the partnership’s books, Form 1065, Schedule K-1, New York State filings, and applicable New York City taxes. We provide professional partnership tax preparation in New York for partnerships and LLCs taxed as partnerships, helping ensure income, deductions, partner activity, and tax elections are properly reported.
Form 1065 & Schedule K-1
We prepare Form 1065, U.S. Return of Partnership Income, including the partnership’s income, deductions, gains, losses, and other tax items. We also prepare Schedule K-1 for each partner so their distributive share of partnership income, deductions, credits, and other information can be properly reported on their individual or business tax return.
For New York purposes, partnerships may also need to file Form IT-204 and the applicable New York partner schedules, including Form IT-204-IP for qualifying partners.
Capital Accounts & Partner Contributions
Accurate partner capital accounts are an important part of partnership tax reporting. We review capital contributions, ownership interests, allocations, and changes in partners’ capital accounts to help ensure the partnership’s records and tax reporting remain consistent.
Partner Distributions
We review partner distributions and withdrawals and distinguish them from taxable income and other partnership transactions. Properly tracking distributions can help prevent errors in partner capital and tax-basis reporting.
Guaranteed Payments
Partnerships may make guaranteed payments to partners for services or the use of capital. We review these payments and their treatment when preparing the partnership return and allocating the appropriate information to partners.
Partner Loans
Loans between a partnership and its partners require careful accounting. We review partner loans, repayments, balances, and related transactions so they are properly reflected in the partnership’s financial records and tax reporting.
Fixed Assets & Depreciation
We review the partnership’s fixed assets, equipment, property, and other business purchases to determine the appropriate tax treatment. This includes depreciation, asset dispositions, and applicable depreciation elections.
New York State Partnership Tax
New York partnerships may have filing obligations even though the partnership itself generally passes income through to its partners. A partnership generally files Form IT-204 when it has a New York resident individual, estate, or trust partner or has income, gain, loss, or deduction from New York sources.
We review New York-source income, partner residency, allocations, and applicable New York filing requirements when preparing the return.
New York State PTET
Eligible partnerships may elect into the New York State Pass-Through Entity Tax (PTET). We review whether the partnership is eligible, consider the election and estimated payments, calculate the applicable PTET, and ensure the appropriate information is reported to partners.
For an electing partnership, the partners’ direct shares of PTET are reported through the New York Partner’s Schedule K-1 so eligible partners can claim the corresponding credit.
NYC PTET
For partnerships with New York City connections, New York City Pass-Through Entity Tax (NYC PTET) may also be relevant. An eligible city partnership may elect NYC PTET if it meets the applicable requirements, including participation in New York State PTET and having at least one city-taxpayer partner or member.
We consider NYC PTET alongside the partnership’s other New York City tax obligations and make sure applicable PTET information is properly reflected on partner schedules.
NYC Unincorporated Business Tax (UBT)
Partnerships conducting business in New York City may also have an Unincorporated Business Tax (UBT) filing obligation. NYC provides specific UBT returns for partnerships, including Form NYC-204 and, where applicable, NYC-204EZ.
We review the partnership’s NYC business activity and applicable deductions, exemptions, and filing requirements when determining whether NYC UBT applies.
Multi-State Partnership Tax Filings
If your partnership operates in multiple states, owns property outside New York, has employees in other states, or generates income from multiple jurisdictions, additional state tax filings may be required.
We review multi-state income, state-source income, partner residency, apportionment, and pass-through tax requirements to help identify applicable filing obligations and properly allocate partnership income.
Complete Partnership Tax Preparation
From Form 1065 and Schedule K-1 to capital accounts, contributions, distributions, guaranteed payments, partner loans, depreciation, NYS PTET, NYC PTET, NYC UBT, and multi-state filings, we provide comprehensive partnership tax preparation designed around your business and ownership structure.