Video: Partnerships: Operations Overview

In this lesson, Nick Palazzolo, CPA, expands upon the foundation laid in the initial introduction to partnerships, delving into the operational aspects and their associated tax implications. Focused on the interactions between partners and the partnership, Nick breaks down how to calculate the tax effects of various transactions, whether they involve services rendered or financial exchanges like loans. The intricacies of a partner's tax basis and how it is affected by the partnership's liabilities are further explored, including the distinctions between recourse and non-recourse debts. Wrapping up, he analyses the differing impacts on general and limited partners, providing a comprehensive overview of partnership operations and the effects on those involved.