Can anyone tell me what is the best way of tackling the following:-
One partership with two partners that invented a product is no longer functioning. One partner has left and the other partner is setting up a new partnership with two other partners to develop the same product. The first partnership sustained losses, how can these be best utilised in the new partnership? Is it as simple as the original partner just rolling over his % of the original losses from his old partnership and using them on his new partnership tax return, or does it have to be a bit more formal than that?
Thanks in advance
Laura Landmark
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Partnership losses
The partnership itself does not have losses as such, the individual partners take the losses in accordance with their PSR at the time. So the losses will be accrued to each partner individually and relieved by whatever route that is appropriate for the partner eg. employment income (cessation loss relief), carry forward, etc.