Partnership basis

This topic has 6 replies, 2 voices, and was last updated 10 years ago by Anonymous.

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April 11, 2014 at 11:12 pm #184900

Anonymous
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I understand that partnership income increases basis and losses decrease basis, but what about things like fines and life insurance premiums that the partnership is the beneficiary. Do things that are not deductible to the partnership decrease your basis?

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April 12, 2014 at 12:31 pm #543605

Anonymous
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Anyone?

April 12, 2014 at 12:31 pm #543628

Anonymous
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Anyone?

April 12, 2014 at 1:20 pm #543607

LaxCPA
Member

Yes nondeductible expenses decrease partners basis, from publication 541:

Decreases. The partner's basis is decreased (but never below zero) by the following items.

The partner's distributive share of nondeductible partnership expenses that are not capital expenditures. This includes the partner's share of any section 179 expenses, even if the partner cannot deduct the entire amount on his or her individual income tax return.

April 12, 2014 at 1:20 pm #543630

LaxCPA
Member

Yes nondeductible expenses decrease partners basis, from publication 541:

Decreases. The partner's basis is decreased (but never below zero) by the following items.

The partner's distributive share of nondeductible partnership expenses that are not capital expenditures. This includes the partner's share of any section 179 expenses, even if the partner cannot deduct the entire amount on his or her individual income tax return.

April 12, 2014 at 2:23 pm #543609

Anonymous
Inactive

Thanks!

April 12, 2014 at 2:23 pm #543632

Anonymous
Inactive

Thanks!
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