Apparently the Tax Preparer
is just reflecting the balances in the capital accounts
in the figure that you are quoting.If the profits/losses are split equally, (50/50) that's the only thing that affects anything currently. For that it appears they are equal partners. When you say that your husband has put triple the amount of capital into the business more than the other partner are you talking about cash or sweat equity. Generally in arrangements similar to what you are describing, one partner puts in the capital to start the business in exchange for an ongoing 50% interest in the partnership.It's great that they have a written partnership agreement as for a partnership to be valid for income
tax purposes, you don't need a written agreement. I don't know what the business is but if your husband has put additional cash into the partnership, it would have had to be recorded on the books either as addition capital or a loan from him to the Partnership.Unfortunately, for tax purposes, there's no value to be recorded for "Sweat Equity". The value is reflected in the initial 50% share of the partnership without a cash contribution equal to the non-operating partner.So, basically, I would get too concerned about the relationship of the capital accounts to one another, what is important is that the partnership agreement reflects that they are equal partners.All that said, is there something specific that you are concerned about or is it just that from the relationship of the capital accounts it appears that you husband isn't an equal partner? So, if the operations are proceeding as agreed initially, you wouldn't want to upset the apple cart because the tax rules
require one thing and you believe it should be something else.If you want me to comment further, I'd be happy to do so, but you'll need to tell me more about the partnership and it's operations and who is doing what to promote the business. Perhaps you should read the partnership agreement first and then I may be able to assist you if there are provisions that concern you.You can just start another question and ask for me "Steve G", and I'll be happy to assist you in any way I can.Thanks very much,Steve G.PS Please remember to rate
my response as that is the only way we receive credit
for our work.