Partner's Share of Partnership Liabilities
A change in a partner's share of partnership liabilities increases or decreases the partner's outside basis in the partner's partnership interest. An increase in a partner's share of partnership liabilities increases the partner's outside basis because the assumption by the partner of a share of partnership debt is considered a deemed contribution to the partnership. Similarly, a decrease in a partner's share of partnership liabilities decreases the partner's outside basis because the partner being relieved of liability for a share of partnership debt is considered a deemed distribution to the partner.
Read more about this topic: Partnership Taxation In The United States
Famous quotes containing the words partner, share, partnership and/or liabilities:
“When a man’s partner is killed he’s supposed to do something about it. It doesn’t make any difference what you thought of him. He was your partner, and you’re supposed to do something about it.”
—Dashiell Hammett (1894–1961)
“I feel the desire to be with you all the time. Oh, an occasional absence of a week or two is a good thing to give one the happiness of meeting again, but this living apart is in all ways bad. We have had our share of separate life during the four years of war. There is nothing in the small ambition of Congressional life, or in the gratified vanity which it sometimes affords, to compensate for separation from you. We must manage to live together hereafter. I can’t stand this, and will not.”
—Rutherford Birchard Hayes (1822–1893)
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—Angelina Grimké (1805–1879)
“Are we bereft of citizenship because we are mothers, wives and daughters of a mighty people? Have women no country—no interests staked in public weal—no liabilities in common peril—no partnership in a nation’s guilt and shame?”
—Angelina Grimké (1805–1879)