Partnership Basics: Basis and Allocation of Income and Loss (2023)

Highlights

Formation, Tax Year, Partner’s Taxable Income, Partners Dealing with Own Partnership, Treatment of Partnership Liabilities, Distribution of Partnership Assets, Termination of Partnership

Prerequisites

Basic experience with partnership tax returns.

Objectives

After completing this course, you will be able to (1) identify different issues regarding partnership formation, (2) calculate ordinary and taxable income for the partner and partnership, (3) identify items that change basis, (4) calculate the effect of partnership liabilities on basis, (5) compute the effects of distributions of partnership assets, (6) identify events that terminate a partnership, and (7) calculate gains or losses on liquidating distributions.