Quarterly Tax Update Spring 2022  

The determination of a partner's outside basis is one of the most important things for any partner client. This is maintained by the client and not the partnership. Outside basis determines how much a partner may withdraw or deduct from a partnership for tax purposes without recognizing additional gain or without being limited on the allowable flow-through of partnership losses. Practitioners should work closely with a partner client to assure the basis is properly maintained to take full use of many of the advantages of partnership taxation. Ian Redpath, JD and Brian O Sullivan, CPA,CVA discuss partnership bases. In our second segment, Ian and Bob Lickwar, CPA discuss a number of issues practitioners should pay close attention to in filing Form 1040 for clients in 2021.