Problem
You and I enter into a Partnership agreement. I will Contribute Cash for $50,000 and you will provide Services and not contribute any cash or property. You will be given a vested Profit and Equity interest in the partnership of 50 percent on day one. Therefore, we shall both have a 50/50 Profit and Equity Interest from inception. Discuss any tax implications to you as a Service Partner? Will you have any basis in the Partnership upon inception?