Partnership Tax - Adjusting Basis Made Easy

In this video, I break down how a partner’s outside basis changes during partnership operations. You’ll learn how to apply increases and decreases to basis from a partner’s distributive share, tax-exempt income, assumption of partnership debt, loss allocations, withdrawals, and distributions. The lesson includes seven fully worked problems to help you understand exactly how basis adjustments work in real partnership tax situations.

What You Will Learn

• How a partner’s outside basis increases and decreases during the year
• How taxable income, tax-exempt income, and debt allocations increase basis
• How losses, nondeductible expenses, withdrawals, and distributions reduce basis
• How recourse and nonrecourse debt affect basis
• The ordering rules for basis adjustments
• How to avoid negative basis and determine when gain must be recognized
• Seven step-by-step problems showing how the rules apply in practice

Video Chapters

00:00 Basis Adjustments
10:24 Problems

About Brian Winrow

Brian Winrow is a tax attorney and educator with extensive experience in taxation, accounting, and business. He holds a J.D., LL.M. in Taxation, DBA, MAcc, and MBA, and is licensed to practice before the U.S. Tax Court. He also maintains active professional certifications in taxation and fraud examination. Brian teaches undergraduate and graduate-level tax and accounting courses and focuses on making complex tax concepts easy to understand. He is the founder of Winrow Tax Services, where he works with individuals and businesses on a wide range of tax matters.

If you're interested in working with Brian or learning more about his tax practice, you can visit Winrow Tax Services at www. winrowtax.com.

Who This Video Is For

• Tax students and accounting majors
• CPA or EA exam candidates
• Corporate tax professionals
• Anyone studying corporate distributions or E&P calculations

Have Questions?

Leave them in the comments! I post regular tax education videos designed to make difficult concepts simple and accessible. If you are seeking to become a client, please direct your questions to [email protected] as opposed to leaving them in the comments,