Partnership Taxation

Understanding the taxation of partnerships and partners is a critical component of successful tax consulting. The popularity of limited liability companies as the most common entity-of-choice for new businesses requires tax consultants to have a strong handle on Subchapter K of the Internal Revenue Code.

Partnership Taxation addresses important issues regarding the formation, operation, and liquidation of entities taxed as partnerships, including general partnerships, limited partnerships, LLPs, LLLPs, and LLCs. In particular, this text covers topics such as contributing property and services to a partnership, determining a partner’s tax basis in the partnership, selecting a partnership’s taxable year, computing a partnership’s taxable income, identifying separately-stated items, understanding the substantial economic effect requirement, handling nonliquidating and liquidating distributions, selling partnership interests, among other topics.

This text includes review problems at the end of each chapter to strengthen the reader’s understanding of important concepts and the application of the law to particular transactions. Selected court cases are also included so that the reader has opportunity to study a court’s analysis of particular issues involving partnerships. Ultimately, after studying this text, the reader should have a valuable understanding of the taxation of partnerships and partners.