Partner's Outside Basis

Free CPA REG (Taxation & Regulation) lesson in Federal Taxation of Entities. 23 min read, ~3,506 words.

Initial outside basis = cash + adjusted basis of property contributed - liabilities relieved + share of liabilities assumed + gain recognized. Inside basis = carryover under §723. §752 splits liabilities: recourse goes to the partner bearing economic risk of loss; nonrecourse uses the three-tier allocation (minimum gain, §704(c) gain...