[Anonymous]

Hello everyone,

This is my first time posting and I am having trouble with this one concept. In regards to Partnerships, what is the difference between a partners adjusted basis and tax basis? I am currently studying with the Becker books and I understand that Basis = Capital account + Partner’s share of liabilities. But I am confused in regards to if their is a difference in the adjusted basis and the tax basis.

Also I took the Gleim Reg practice test and got a simulation on this topic. On the simulation it asked for the balance sheet basis. Is that equivalent to the adjusted basis?

Any help would be greatly appreciated. Thanks everyone and good luck studying and taking the tests!

[Anonymous]

Also on the Gleim simulation, 4 partners contributed property, cash (some with and without liabilities), and received cash. The question stated that each partner received a 25% ownership and a starting equity of $50,000. Does that factor into the adjusted basis or tax basis?

[Author]

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