I need to get the book value of a partnership and S corp......is it the equity in the company? If there is no equity, then negative book value. I need to give it to an Attorney to determin for Divorce purposes.
Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.
For a partnership or S Corp the book value of the entity is defined as the company assets less the company debts and can easily be summarized by looking at the following:
Partnership (using 2011 tax return form 1065) Go to page 5. It is reflected on line 21 column D for the entire entity. If you are a part owner your personal share of this will be reflected on Schedule K-1, line J Capital ending.
S Corporation. The return is similar to that used by a partnership. However, it will require you doing a little math. For the entire entity's net worth (book value) go to page 4, Schedule L and add the following lines from column D - 22 through 26. For your personal portion of the book value you will need to take the above answer and multiply it by your percentage ownership which is found on Schedule K-1, Part II, item F.
If you need additional assistance, please feel free to ask.
over 40 years experience in tax matters
I am going to look at it now...If I have questions, I will email you back. Thanks
Come back any time. For this case remember that negative equity should also be reported to the attorney if that is the situation.