Video: Partnerships: Formation Overview

In this lesson, explore the fundamentals of partnership formation with Nick Palazzolo, CPA, as he navigates the comprehensive journey of a partnership's life cycle—from inception and contributing property to ordinary business activities. Nick kicks off the series with a detailed look at calculating ordinary business income or loss, comparing it to other flow-through entities like S-Corporations. He also breaks down the intricacies of partners' basis calculation, asset contributions, and the impact these have on the partnership's financial landscape. Additionally, this lesson delves into the necessary partner elections for tax purposes. This foundational knowledge is crucial for understanding the later parts of the series, which will cover topics such as distributions and concluding a partnership's existence. Join Nick in laying the groundwork for a robust understanding of partnership taxation intricacies.