Distributive Share
/ˈdɪstrɪbjutɪv ʃɛr/
Definitions
- (n.) The portion of income, loss, deduction, or credit allocated to a partner in a partnership.
Each partner receives a distributive share of the partnership's profits according to the partnership agreement.
- (n.) A shareholder's portion of income or loss in a trust or estate, distributed for tax reporting purposes.
The beneficiary reported his distributive share of the trust's income on his tax return.
Forms
- distributive share
Related terms
See also
Commentary
The term is central in partnership and trust taxation; precise allocation per the governing document is crucial to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.