BUSI 4005 Chapter Notes - Chapter 19: Legal Personality, Joint Venture, Limited Partnership
19 May 2018
School
Department
Course
Professor
Partnership
- Relationship between person carrying on business in common with view to profit
- No separate legal entity
- No direct tax on income
- Tax payable based on individual net income
- Governed by provincial legislation
1. Content
a. Allocation of profit
b. Control and management
c. Right and duty of partner
d. Location of book and bank account
e. Filing FS and information return
f. Register partnership
2. Element
a. More than 2 people
b. Must carry business
c. Business must be viewed with profit
3. Type
a. General
i. Unlimited liability for debt and obligation
ii. Equal amount
iii. Act behalf of partnerships
iv. No remuneration
b. Limited partnership
i. 1 general + 1 limited partner
ii. Only interest in finance portion
iii. No management
iv. Limited liability
v. Register under provincial legislation
c. LLP
i. Not liable for liability arise from wrongdoing of others
ii. Liable for general debt
iii. Only lawyer and CA
Joint venture
i. Share resource as 1 business
ii. Joint property interest in venture
iii. Has management and mutual control
iv. Limit to single or limited number of undertaking
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Relationship between person carrying on business in common with view to profit. Tax payable based on individual net income. Joint property interest in venture: has management and mutual control. Limit to single or limited number of undertaking. More than 2 people co-own property + share ownership right. Type: joint tenancy, tenancy in common. Group of people agree to input money or asset for common purpose. Allocation of income / loss/ tax credit. Separate person assumption: separate person when determine allocation, some deduct at partnership level, others at individual. If individual, revenue + expense less than 2 million, no reporting. Information return: unless more than 5 member. Capital property: acb = net income of a partner, cg = proceed - acb. If negative ending balance, not taxable as cg unless dispose: only to general, llp- realise cg. Reorganization: no rollover, partner partnership, at fmv, proceed = acb purchaser, rollover.
