LenaH
Employee Tax Expert

Business & farm

Yes, you should track these amounts as they increase your tax basis. The amount of your basis will determine any gain or loss you will report when you dispose of the interest in the partnership. When you eventually sell your partnership shares, your gain or loss is calculated as the difference between the selling price and your adjusted basis. For a detailed IRS worksheet for adjusting your basis (for both increases and decreases), click here

 

@rhartmul 

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