Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 01-02-2013, 07:09 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,347
Blog Entries: 3
What does a taxpayers "tax basis" represent and what is its importance to that partner?

A taxpayer's tax basis in a partnership interest (called partner's outside basis)represents the partner's cost for tax purposes and is used to determine and calculate the following;

1.Determine the taxable gain or loss upon disposition of a partnership interest.

2.Limit the partner's ability to deduct a partnership loss.

3.Determine the extent in which cash distributions are tax-free instead of taxable.

4.Determine the basis of property received as a distribution.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Alabama Department of Revenue (ADOR) announced "Penalty Relief Available to Certain Taxpayers"! TaxGuru Alabama 0 02-01-2012 12:23 PM
IRS gives transitional relief to Form 8937, "Report of Organizational Actions Affecting Basis of Securities" filers! TaxGuru General 0 01-17-2012 10:50 AM
Which Taxpayers qualify for the "Innocent Spouse Relief?" TaxGuru Divorce Tax Issues 0 01-22-2010 06:45 AM
Which Taxpayers are not "Eligible for the First-Time Homebuyer Tax Credit?" TaxGuru Tax Credit 0 01-05-2010 08:22 PM
IRS reminds taxpayers that all "Income from Abroad" must be reported! TaxGuru Income 0 07-27-2008 08:32 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning