Partnership Tax in the U.S.

This video provides an overview of how partnerships are taxed in the United States. It discusses: -What a partnership is, how it is formed, and what tax return it must file -Advantages of partnerships: why people would choose a partnership instead of an S corporation or a C corporation -The different types of partnerships, as well as the difference between general and limited partners -The importance of the partnership agreement -The difference between a partner's capital interest and their profits interest -How a partnership's income flows through to the partners and is taxed at the partner level, with distinction made for separately stated items like capital gains -The two types of guaranteed payments, and how they are taxed -Outside basis, inside basis, and Section 704(b) capital accounts 0:00 Introduction 0:29 What is a partnership? 3:16 Why use a partnership? 6:23 Types of partnerships 8:34 The partnership agreement 9:45 Capital interest vs. profits interest 11:22 Partnership income/losses 13:12 Guaranteed payments 15:48 Outside basis 17:15 Inside basis 17:53 Section 721 18:49 Why outside basis and inside basis might differ 19:38 Special allocations and 704(b) capital accounts — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *  / prof_mclaughlin   — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST Apple Podcasts: https://podcasts.apple.com/us/podcast... Spotify: https://open.spotify.com/show/4WaNTqV... Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK   / prof_mclaughlin   — ACCESS INDEX OF VIDEOS https://www.edspira.com/index — CONNECT WITH EDSPIRA Facebook:   / edspira   Instagram:   / edspiradotcom   LinkedIn:   / edspira   — CONNECT WITH MICHAEL Twitter:   / prof_mclaughlin   LinkedIn:   / prof-michael-mclaughlin   — ABOUT EDSPIRA AND ITS CREATOR https://www.edspira.com/about/ https://michaelmclaughlin.com