Video: Types of Partners

In this lesson, Nick Palazzolo, CPA, dives deep into the distinctions between general and limited partners, elaborating on their roles, liabilities, and the resulting tax implications of each. With a clear and engaging explanation, Nick illuminates the responsibilities and risks that come with being a general partner, including unlimited liability and participation in management. He contrasts this with the limited partner's role, which involves less active involvement but also limits liability. The lesson further explores complex situations like related party transactions, shedding light on when losses are recognized and how gains are taxed to prevent manipulation of the tax system. Filled with real-world examples, the session provides a granular look at partnership dynamics and is particularly insightful for grasping the intricacies of income recognition and tax allocation amongst different types of partners.