In a partnership, adding a new partner has a number of financial and legal implications. Let’s imagine you and your partners want to add a new partner to the mix. By making a cash contribution, the new partner will have a one-third interest in the partnership. Assume that your basis in your partnership interests is
A Section 1031 like-kind exchange, in which you trade property rather than sell it, is one approach to defer a tax bill on gains.
If you’re launching a business with some partners, an S corporation may be the most suitable form of business for your new venture. Here’s why.
Several elections are available to an S corporation or its shareholders that can affect the basis adjustments caused by distributions and other events.
Unlike regular corporations, partnerships aren’t subject to income tax. Instead, each partner is taxed on the partnership’s earnings