[Anonymous]

I understand that partnership income increases basis and losses decrease basis, but what about things like fines and life insurance premiums that the partnership is the beneficiary. Do things that are not deductible to the partnership decrease your basis?

[Anonymous]

Anyone?

[Anonymous]

Anyone?

[LaxCPA]

Yes nondeductible expenses decrease partners basis, from publication 541:

Decreases. The partner's basis is decreased (but never below zero) by the following items.

The partner's distributive share of nondeductible partnership expenses that are not capital expenditures. This includes the partner's share of any section 179 expenses, even if the partner cannot deduct the entire amount on his or her individual income tax return.

[LaxCPA]

Yes nondeductible expenses decrease partners basis, from publication 541:

Decreases. The partner's basis is decreased (but never below zero) by the following items.

The partner's distributive share of nondeductible partnership expenses that are not capital expenditures. This includes the partner's share of any section 179 expenses, even if the partner cannot deduct the entire amount on his or her individual income tax return.

[Anonymous]

Thanks!

[Anonymous]

Thanks!

[Author]

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