Part 2 — Businesses·Partnerships

Chapter 19 — Partnerships

*Exam weight: HIGH*

| File | Topic | |---|---| | Chapter 19 - Partnerships/19.1-partnership-basics.md | Partnership Formation, Basis, K-1, Distributions |

Key concepts: §721 nonrecognition (property contributions), partner outside basis (cash + property basis + liability share), basis adjustments (income increases, distributions and losses decrease), guaranteed payments (ordinary income to partner, SE tax, deductible by partnership), loss limitations (basis → at-risk → passive), Form 1065 (March 15), K-1 issuance, current vs. liquidating distributions.

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