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In response to "arg i have a finance/accounting question (should be easy but my brain is making it hard)" by tRuMaN

It depends!

Posted by spamlet (iPhone) (aka spamlet) Nov 28 '11, 10:06

I've usually found that unless it is material, the partnership is usually shown at the original investment and the partnership income is essentially treated as a perm difference for the tax return.

Technically, it could be the same or could be different depending on whether the corp had control of the partnership. If it is accounted for under the equity method it would be the same only if no book-tax differences (temp or perm).

Responses:

the corp is the general partner, so by definition, they have control. - tRuMaN Nov 28, 10:07 3
- Good point. GAAP is not my strong point. - spamlet (iPhone) Nov 28, 10:09
- also the partnership's only business is a low income house rental facility. -- nm - tRuMaN Nov 28, 10:08 1
  - There will be tons of difference. Depreciation, housing tax credit, etc.., - spamlet (iPhone) Nov 28, 10:10

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