How are distributions of cash to a partner taxed


Problem

I. How are partners in a partnership taxed on their distributive share of the partnership's income?

II. How does this distribution impact their basis in their partnership interest?

III. How are distributions of cash to a partner taxed and what is the impact of the distribution on the partner's partnership interest?

IV. What is a guaranteed payment and how is this taxed and what impact does it have on the partner's basis in the partnership interest.

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Taxation: How are distributions of cash to a partner taxed
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