Initially, the partnership interest will be treated as an asset for the amount of your company’s contribution to the partnership. Subsequently, your partnership interest amount will be increased (or decreased) by your portion of the Partnership’s net income/loss. Furthermore, any distribution made to your company as part of a draw from the partnership will directly reduce your partnership interest.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.