Jeremy breaks down how partnerships can divide profits among partners who contribute very different things — cash, property, or just time and effort — without running afoul of federal tax law. Using a hypothetical partnership as a running example, he covers what makes an allocation legitimate versus a tax dodge, and why the IRS cares so much about the difference.
Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
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This podcast is a production of Earmark Media
- (00:00) - Meet Lighthouse LLC
- (01:17) - Investor Payback Goals
- (04:32) - Course Roadmap
- (05:40) - Pass Through Basics
- (08:47) - Baisey Case Lesson
- (14:18) - Separately Stated Items
- (20:39) - Partner vs Partnership Tests
- (23:22) - Unreimbursed Expenses
- (27:27) - Property Contributions 721
- (32:01) - 704c Built In Gain
- (36:37) - Capital Accounts Explained
- (42:04) - Substantial Economic Effect
- (52:05) - Drafting The Waterfall
- (55:55) - Key Takeaways Next Steps
Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media