"David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote:
- quote -

Of course individuals and corporations can for partnerships.
Of course when people (or businesses) work "together" and
agree to share revenues it's probably a partnership.

But merely because a person's compensation is determined as
a percentage of net or gross income does not make it a
partnership. Your comment, "it's already a partnership"
implied that it had to be a partnership under those
circumstances. But that's not always the case.

Stu

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"Stuart A. Bronstein" <spamtrap[at]lexregia.com> wrote:
- quote -

So read another book. Commissions are a contractual
agreement, not revenue sharing in a pure form. If you and I
work together and agree to share revenues, is that not a
partnership? Can not the same agreement exist between a
corporation and an individual? Are there not partnerships
with both corporations and individuals in them? You may
want to rethink your comments.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"shempmcgurk[at]netscape.net" <shempmcgurk[at]netscape.net> wrote:
- quote -

No unless the corporation received the benefits of ownership
of the annuity. 704(b) rules would state that there is no
economic benefit to doing such a thing unless the
corporation was some sort of beneficiary of the annuity.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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sethb[at]panix.com (Seth Breidbart) wrote:
- quote -

I've actually seen cases similar to that. Some people will
try to blame everyone they can irrespective of common sense.

Stu

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Dan Lanciani <ddl[at]danlan.*com> wrote:

- quote -

I think he's nuts. Can you imagine the result if an author
got sued because his publisher's truck hit a pedestrian?

Seth

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spamtrap[at]lexregia.com (Stuart A. Bronstein) writes:
- quote -

One of my attorneys used to make the argument that I was
likely creating a partnership when a license agreement
specified my royalty as a percent of revenue (and sometimes
even when it didn't but had other terms that seemed to
create a partnership-like relationship). He suggested
adding "self serving" language declaring that the agreement
did not create a partnership, but cautioned that this would
probably not help if a third party decided to sue me on the
basis of the licensee's actions as my "partner." He had
some pretty far-fetched-sounding examples of liability, too.
E.g., representative of licensee on his way to meet with me
(and thus clearly engaged in partnership business) hits
pedestrian making me jointly liable.

Dan Lanciani
ddl[at]danlan.*com

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David Woods wrote:
- quote -

Let me explain what I am getting at.

20 years ago a Canadian friend was selling shares in a real
estate fund in which a certain percentage of the
share-holders were charities. Because charities didn't pay
taxes, they didn't need the annual depreciation expense they
were entitled to under the tax laws. And, as I understood
it, the tax laws allowed for a sharing -- or transference of
-- the charities' annual depreciation allowance with the
other shareholders in the fund so that THEY got the benefit
of their partners' (the charities) depreciation.

I am wondering whether such a thing exists in U.S. law...not
for real estate and depreciation per se but in another area:

Under section 1035 of the US tax code I can transfer the
cost basis of a life insurance policy to an annuity. If I
as an individual had, say, $10,000 in cost basis in a life
insurance policy and "1035ed" it into an annuity that I
bought with a corporation, could I transfer that cost basis
to the corporation?

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David Woods <davidwoods[at]verizon.net> wrote:
- quote -

So anyone who receives a commission is automatically a
partner of the company that pays him? Not in my book.

Stu

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"shempmcgurk[at]netscape.net" <shempmcgurk[at]netscape.net> wrote:

- quote -

It is ALREADY a partnership.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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shempmcgurk[at]netscape.net wrote:

- quote -

Depends on what you mean by "share."

- quote -

That would be the normal way to do it. I suppose you could
say that sales people on commission "share" revenue with
corporations without a partnership agreement.

Stu

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Can a corporation share revenue with an individual?

If "yes", do they have to set up a partnership that is a
separate entity from both the individual and the
corporation?

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