Channel: Edspira

Category: Education

Tags: reg cpa examtaxation of partnershipinside basis vs outside basis partnershippartnership taxreg cpa reviewinside basis vs outside basispartnership taxation basisoutside basiscpa reviewpartnership taxation basicsus partnership taxationpartnership taxation

Description: "Outside basis" refers to a partner's tax basis in their partnership interest. Outside basis is calculated as follows: The partner's initial basis Plus: additional contributions made by the partner to the partnership Plus: increases in the partner's share of the partnership's liabilities Plus: the partner's share of partnership income Plus: the partner's share of tax-exempt income Plus: the partner's share of depletion deductions in excess of the depletable property's basis Minus: distributions of cash or property from the partnership to the partner Minus: decreases in the partner's share of the partnership's liabilities Minus: the partner's share of partnership losses Minus: the partner's share of nondeductible expenses that aren't capital expenditures Minus: the partner's depletion deduction for any partnership oil and gas property, to the extent the deduction doesn't exceed the proportionate share of the property's basis Note that a partner's outside basis can never go below zero. — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES * eepurl.com/dIaa5z — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: edspira.com/podcast-2 — GET TAX TIPS ON TIKTOK * tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * edspira.com/index — CONNECT WITH EDSPIRA * Facebook: facebook.com/Edspira * Instagram: instagram.com/edspiradotcom * LinkedIn: linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: twitter.com/Prof_McLaughlin * LinkedIn: linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * edspira.com/about