Читать книгу Taxation Essentials of LLCs and Partnerships - Larry Tunnell - Страница 35

Dennis is a 10% partner in Dame Partners. At the beginning of the year, his basis in Dame was $25,000. For the year, Dennis received a K-1 from Dame Partners reporting that his share of partnership ordinary income or loss was ($12,000), and his share of partnership interest income was $2,500. Dennis' basis in his partnership interest at the end of the year will be $15,500 ($25,000 - $12,000 + $2,500).

In summary, partners include their shares of each item of partnership income, gain, loss, or deduction on their own tax returns each year, whether distributed to them or not. A partner's basis in his or her partnership interest is adjusted upward by his or her share of items of partnership income or gain. It is adjusted downward for his or her share of items of partnership loss or deduction. Finally, as the partner withdraws his or her share of partnership income, or portions thereof, basis is adjusted downward to reflect the distributions. In this way, the partner's basis in the partnership interest reflects the partner's net investment, direct and indirect, in the partnership.