Partnerships

Basis

Partnership operations: Partner Basis Formula

Partnership tax returns

Determination of partner's share of income, credits, and deductions

Reporting partnership income and losses (K-1)

Reporting partnership losses (limited to basis)

Nonliquidating distributions

Limited partnerships

Limited liability companies

Accounting periods of the partnership

Transactions between partner and partnership

Partnership's basis for contributed property

Basis of contributing partner's interest

Partnership

Formation

Tax losses

Guaranteed payments: like salary expense, interest expense

Taxable income: like a bank account

Retirement payments: ordinary to recipient, deduction to partnership

Tax election

Organizational expenditures: up to 5k, excess amortize over 5 yrs and start-up costs: up to 5k, excess amortize over 5 yrs

Basis assigned to distributed property

Gain on excess cash

General partners

Limited partners

Section 754 election and section 743(b) basis adjustment

Liquidation

Sale of partnership interest: capital

Retirement or death of partner

Complete withdrawal

Nontaxable

Gain recognized: $>basis

Loss recognized: $ < basis (no other items)

Liquidation of an LLC