Partnerships use pass-through taxation rather than having a tax on the partnership. Form 1065 “notes the amount oftaxable income generated by the partnership, and the amount of this income attributable to each of the partners.”(Bragg, S.,2018). Thus form 1065 tracks how much the partners gained or lost and their portion is based on theirinitial investment.“Sec. 723 provides that a partnership’s basis in the contributed property is generally the contributingpartner’s adjusted tax basis in the property, plus any gain the partner recognizes under the investment companyrules.” (2014).I thought it was informational how you stated the tax outcomes would be the same for the partner with
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Thought,Taxation in the United States,Partnership taxation