Video: Partnership Stages

In this lesson, Nick Palazzolo, CPA, paints a clear picture of the life cycle of a partnership from its inception to its eventual dissolution. He breaks down the technical process of forming a partnership, highlighting how partners contribute capital, property, or services, and how this affects their basis in the partnership. He dives into practical examples, illustrating how a partner's basis is determined and the tax implications of contributions and property valuations at different stages, including admission of new partners. Nick provides an insightful look at the operation of a partnership, explaining income allocation, the flow-through of profits and losses, and the handling of distributions, all with a focus on practical applications and tax form references. Participants will also learn about liquidation—how it wraps up the partnership's activities and the corresponding tax consequences for the partners. Throughout the lesson, Nick supports the discussion with concrete numbers and scenarios, ensuring a robust grasp of these foundational concepts for successfully navigating partnership taxation.