TaxMonkey
Level 8
12-07-2019
12:55 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Are you familiar with IRC 754 election and partnership basis adjustments?
Regardless, the capital account of the partner being bought about must be zero, so a phantom contribution should be made to zero out his capital account. The will result in a phantom asset on the partnerships balance sheet. This will be non deductible to the partnership, baring a 754 election and all that entails.