Can husband and wife run a Gallery as a partnership where wife does the paintings only while husband contributes all expenses?

Illinois Viewed 40 times. Posted 4 months ago in Tax

In the partnership agreement it is intended to mention that in a dissolution, all assets will go to the husband while paintings will be the property of the wife including the limited editions. Husband has to contribute to framing, provide money to buy the paint etc. So I believe the husband can claim the expenses on his tax returns. - Is this your question? Add additional information

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Answers (1)

Mark L Rosenberg

This attorney is licensed in Dist. of Columbia and 1 other state. Posted 4 months ago.

The partnership or the LLC is a separate entity for tax purposes, and will file separate tax returns. As "pass through" entities, all income or loss will pass to the partners according to each one's percentage of interest. Your partnership agreement or LLC operating agreement can certainly specify what happens in terms of a dissolution or liquidation, but that does not necessary affect the tax items while the company is operating.

Mark L. Rosenberg