DESCRIPTION
This module discusses the concepts of tax basis and at-risk basis. There is an emphasis on how the relationship between partnership (and LLC) liabilities and basis affects the deductibility of partnership (and LLC) losses. There are exercises throughout the module and a comprehensive case study.
LEARNING OBJECTIVES
- Discuss the concept of tax basis.
- Differentiate between inside basis and outside basis.
- Differentiate between tax basis and at-risk basis.
- Analyze the increases and decreases to tax basis and at-risk basis.
- Examine how partnership (and LLC) liabilities provide a tax basis and at-risk basis for deducting partnership losses.
