Video: Partnerships: Distributions & Liquidation Overview

In this lesson, wrap up the series on partnerships with a thorough exploration of distributions and liquidation, bringing to light the calculations and tax implications involved. Nick Palazzolo, CPA, expertly navigates through the complex terrain of realized and recognized gains or losses, both in liquidating and non-liquidating distributions. He lays out how to determine the partner's basis in received partnership assets, varying from cash to property, and underscores the circumstances leading to partnership termination. Additionally, Nick clarifies the allocation of partnership income or loss following the sale of a partner's interest and the resulting adjustments to the basis of the partnership's assets. This final installment ensures a strong grasp of the essential elements for effectively handling partnership dissolutions and changes in ownership.