partnership

Making the Most of Business Partnerships: How to Use Special Tax Allocations

Many entrepreneurs shy away from choosing a partnership as their entity type. A partnership is simply a formal agreement between two or more parties to manage a business together and share the profits. From a tax perspective, partnerships are often viewed as too complicated and can come with tax disadvantages when you have non-passive partners […]

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Calculating Adjusted Tax Basis in a Partnership or LLC: Understanding Inside vs. Outside Basis

Calculating adjusted tax basis in a partnership or LLC takes us into a complex area of tax law. Remember that the tax basis is equal to the purchase price of an asset minus any accumulated depreciation. This formula sounds simple enough, but a business’s entity type can introduce unique complications in determining the initial value

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