Family partnerships have been useful tax vehicles for transferring wealth between family members and securing numerous non-tax benefits. However, these partnerships have been heavily scrutinized by the IRS since the validity of the partnership allocations (and the partnership itself) will naturally come into consideration when taxpayers mix business with family. This module dives into some of the key considerations and concepts when family members create a partnership or LLC. Specifically, this module discusses how a family partnership is created, the different tax implications of acquiring a partnership interest, the assignment of income doctrine, the allocation rules found under the § 704(e) Allocations Rules, and factors that determine who actually owns a partnership interest.