Question

A partners outside basis in a partnership will generally equal their

Answer 1

Answer - A partners outside basis in a partnership will generally equal their tax capital accounts plus their share of liabilities .

A partner's basis in his/her partnership interest is referred to as 'outside basis'. outside basis is made up of two components:-

1.partnership taxable income .

2.Partnership non- recourse liabilities and recourse liabilities to the extent that the partner bears the 'economic risk of loss 'of such liability and is reduced by the partner's share of partnership distributions and losses.