What Is A Current Partnership Distribution?

What Is A Current Partnership Distribution? There are 2 types of distributions: a current distribution decreases the partner’s capital account without terminating it, whereas a liquidating distribution pays the entire capital account to the partner, thereby eliminating the partner’s equity interest in the partnership. What qualifies as partnership distribution? A partnership distribution is when the

How Do You Make A Section 754 Election?

How Do You Make A Section 754 Election? An IRC Section 754 election allows a partnership to adjust the basis of the property within a partnership under IRC Sections 734(b) and 743(b) when one of two triggering events occur: 1) a distribution of partnership property or 2) certain transfers of a partnership interest. When can