Some comments here:
- While a balance sheet is technically not required based on your activity threshold, I always recommend one be maintained. This is a good check and balance for activity.
- The balance sheet within TT Business is not something that is computed. This component needs to be manually input.
- I recommend you purchase QuickBooks to maintain your books and records.
- It is clear based on the limited facts you need some professional tax advice on how to get started with your partnership. Large or small, partnership tax is complicated.
- Also based on the limited facts, it appears you need professional tax advice in how partnership allocations work. In general, it does not make sense that one partner should be allocated a loss and another income. This is Partnership Tax 101 red flag. The general rule is allocations are based on the partner's interest in the partnership (PIP rule). Anything outside of this allocation needs to be supported by the extremely complex substantial economic effect regulations. These regulations are not for the feint of heart.
- Bottom line, please consult with a tax professional for your initial year.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
