What Functions Might Parents Provide If They Are Serving as "Managers

question 58

Essay

What functions might parents provide if they are serving as "managers"?

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Definitions:

Ordinary Expense

In tax terminology, ordinary expense refers to any expense common and accepted in your trade or business operation.

Income Recognition

The accounting principle stating that income should be recognized in the accounting period in which it is earned, regardless of when the cash is received.

Partnership %

A percentage representation of an individual partner's stake in a partnership, correlating to their share of profits, losses, and liabilities.

Partnership Basis

The amount of a partner's investment in a partnership, used to determine the tax treatment of distributions, additional contributions, and share of partnership income or loss.