Federal Income Taxation of Partners and Partnerships in a Nutshell

This book provides a concise overview of federal partnership taxation. It covers partnership formation, including contributions of property and admission of service partners, allocation of income and loss, tax accounting, and sharing of recourse and nonrecourse liabilities. Building on this foundation, the book also addresses advanced topics, including transactions between partners and partnerships, sales of partnership interests, distributions of property, optional and mandatory basis adjustments, and planning for retirement or death of a partner. Numerous concrete examples illustrate the tax treatment of specific transactions, allowing students to grasp the principles of partnership taxation in a problem-oriented course. The revised seventh edition reflects major tax legislation enacted in 2025 (the “2025 Act”), including choice of entity issues in light of the 21% corporate tax rate and the § 199A passthrough deduction.