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:
“Plantin’ and readin’, plantin’ and readin’. Fill a man full of lead, stick ‘em in the ground, and then read words on ‘em. Why when ya killed a man, why try to read the Lord in as a partner on the job.”
—Borden Chase [Frank Fowler] (1900–1971)
“I would not lose so great an honor
As one man more methinks would share with me
For the best hope I have.”
—William Shakespeare (1564–1616)
“Society is indeed a contract.... It is a partnership in all science; a partnership in all art; a partnership in every virtue, and in all perfection. As the ends of such a partnership cannot be obtained in many generations, it becomes a partnership not only between those who are living, but between those who are living, those who are dead, and those who are to be born.”
—Edmund Burke (1729–1797)
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—Angelina Grimké (1805–1879)