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Think You’re Not in a Partnership? The IRS Might Disagree

May 24, 2025

“The IRS May See a Partnership Where You Don’t
—Here’s What to Do About It”

To get my complete article
with all the details…

You may be in a partnership for federal tax purposes—even if you never signed a partnership agreement or formed an entity.

If you co-own property or a business with others and share income or expenses, the IRS could classify your arrangement as a partnership. That means Form 1065 filings, Schedule K-1s, and the risk of steep penalties for non-compliance.

The good news? You might be eligible to elect out of partnership status—saving time, stress, and filing costs.

Our latest article breaks down:

  • The rules that could trip you up—even when no formal partnership exists
  • When and how to affirmatively elect not to be treated as a partnership
  • Real-world examples of both common pitfalls and simple solutions
  • How to preserve your eligibility for powerful tax advantages, like 1031 exchanges

CLICK HERE to read my completely new article titled:

“Avoid Unwanted Partnership
Tax Status: Elect Out”

Filed Under: Filing tips, Rental Properties, Tax Planning, Tax Policy

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