Question

What is the formula for calculating the basis of a partner?

1) +Cash, +Adjusted basis of property, -Liabilities (amount assumed by other partners), +FMV of services rendered (if applicable), +Liabilities - other partner's liabilities assumed by incoming partner, -reduction of debt
2) +Cash, +Adjusted basis of property, -Liabilities (amount assumed by other partners), +FMV of services rendered (if applicable), +Liabilities - other partner's liabilities assumed by incoming partner, -reduction of debt (if there is a reduction of debt in a partnership, we would subtract this reduction as we added this debt previously to the basis)
3) +Cash, +Adjusted basis of property, -Liabilities (amount assumed by other partners), +FMV of services rendered (if applicable), +Liabilities - other partner's liabilities assumed by incoming partner, -reduction of debt (if there is a reduction of debt in a partnership, we would subtract this reduction as we added this debt previously to the basis), -reduction of debt
4) +Cash, +Adjusted basis of property, -Liabilities (amount assumed by other partners), +FMV of services rendered (if applicable), +Liabilities - other partner's liabilities assumed by incoming partner, -reduction of debt (if there is a reduction of debt in a partnership, we would subtract this reduction as we added this debt previously to the basis), -reduction of debt (if there is a reduction of debt in a partnership, we would subtract this reduction as we added this debt previously to the basis)

Answer 1

The formula for calculating the basis of a partner in a partnership involves cash contributions, the adjusted basis of property, liabilities assumed by other partners, FMV of services rendered, and reduction of debt.

Step-by-step explanation:

The formula for calculating the basis of a partner in a partnership is:
+Cash
+Adjusted basis of property
-Liabilities (amount assumed by other partners)
+FMV of services rendered (if applicable)
+Liabilities - other partner's liabilities assumed by the incoming partner
-Reduction of debt
This formula takes into account the various factors that contribute to the basis of a partner, such as cash contributions, adjusted basis of property, liabilities assumed by other partners, FMV of services rendered, and reduction of debt. It is important to consider all of these elements when calculating the basis of a partner in a partnership.