Video: Types of Distributions

In this lesson, Nick Palazzolo, CPA, breaks down the complex topic of partnership distributions, highlighting the distinctions between liquidating and non-liquidating distributions. With clarity, he walks through how the basis of property distributed is determined in both scenarios, ensuring the concept of basis not dropping below zero is clear and memorable. Nick methodically explains the adjustments to a partner's interest in the partnership post-distribution, demonstrating this with practical examples that mirror the type of simulations often encountered in the exam. By comparing the nuances between partnerships and corporations, Nick equips with a multifaceted understanding of distribution consequences, ensuring a solid grasp on a topic vital for tackling related exam questions with confidence.