WIN employee No. | WIN expenses |
1 | $6,000 |
2 | 5,000 |
3 | 4,000 |
4 | 4,000 |
5 | 3,000 |
Total | 22,000 |
On December 31, 1973, the ratio in which the partners divide the general profits of the LMN partnership is as follows: L receives three-tenths of the general profits, M receives two-tenths of the general profits, and N receives five-tenths of the general profits.
WIN employees | 1 | 2 | 3 | 4 | 5 | Total |
Total WIN expenses | $6,000 | $5,000 | $4,000 | $4,000 | $3,000 | $22,000 |
Partner L (3/10) | 1,800 | 1,500 | 1,200 | 1,200 | 900 | 6,600 |
Partner M (2/10) | 1,200 | 1,000 | 800 | 800 | 600 | 4,400 |
Partner N (5/10) | 3,000 | 2,500 | 2,000 | 2,000 | 1,500 | 11,000 |
Assume that partners L, M, and N did not directly incur any other WIN expenses during their taxable year in which falls December 31, 1973 (the last day of LMN partnership's taxable year) and that such partners did not own any interest in other partnerships, electing small business corporations, estates, or trusts that incurred WIN expenses. The total WIN expenses of partner L are $6,600, of partner M are $4,400, and of partner N are $11,000.
26 C.F.R. §1.50B-4