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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16538
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Hi Megan, I have a partnership tax question for you. I

Resolved Question:

Hi Megan,
I have a partnership tax question for you. I and a fellow tax preparer have formed a partnership. We purchased a building and property. We have set up the property on our individual tax returns and are making payments from the partnership account. Do those payments constitute draws for us or do we need to show them as something else on the tax return. The property is listed under our personal names as we wished to keep it out of the partnership. Thank you.
Submitted: 2 years ago.
Category: Finance
Expert:  Megan C replied 2 years ago.

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

How are you today?

Megan C :

When you make payments on something that is in your personal name from the partnership account, the amount is an owner draw.

Customer:

Thank you so much for your answer. I had a feeling that it was to be treated as a draw.

Megan C :

You're welcome. If you would, please rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

Will do.

Megan C :

Thanks

Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16538
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and other Finance Specialists are ready to help you
Expert:  Megan C replied 2 years ago.
Jay,

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