What is a partnership interest


1. What is a partnership interest, and what rights does it confer to the partner? What are inside basis and outside basis, and why are they important?

2. What is a flow-through entity? What advantages do flow-through entities have over a regular corporation? Compare and contrast the tax characteristics of an S corporation and a partnership.

3. How does the basis calculation of an S corporation shareholder basis differ from a partner and a partnership? Discuss any recent developments in the calculation of the S corporation shareholder's basis.

4. Compare and contrast the requirements for the formation and termination of an S corporation and a partnership. What is the effect on both the business entity and its owners?

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Accounting Basics: What is a partnership interest
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