Partnership Tax in the U.S.

This video provides an overview of how partnerships are taxed in the United States. It discusses:
-What a partnership is, how it is formed, and what tax return it must file
-Advantages of partnerships: why people would choose a partnership instead of an S corporation or a C corporation
-The different types of partnerships, as well as the difference between general and limited partners
-The importance of the partnership agreement
-The difference between a partner's capital interest and their profits interest
-How a partnership's income flows through to the partners and is taxed at the partner level, with distinction made for separately stated items like capital gains
-The two types of guaranteed payments, and how they are taxed
-Outside basis, inside basis, and Section 704(b) capital accounts

0:00 Introduction
0:29 What is a partnership?
3:16 Why use a partnership?
6:23 Types of partnerships
8:34 The partnership agreement
9:45 Capital interest vs. profits interest
11:22 Partnership income/losses
13:12 Guaranteed payments
15:48 Outside basis
17:15 Inside basis
17:53 Section 721
18:49 Why outside basis and inside basis might differ
19:38 Special allocations and 704(b) capital accounts
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[candylover]

Thank you for all you do FOR FREE! Your videos are have been instrumental to me understanding the concepts from my accounting classes. This particular video couldn’t be more timely for a partnership return assignment I have due!

[Ali-jkcu]

i recently started working for a public accounting firm and we prepare 1065 partnership returns. this was super helpful. Thank you so much

[joeandurien]

Seriously you are the absolute best at explaining these taxation issues . Thank you for all you do!! I will be contributing to your patreon.

[krypt]

Currently a student majoring in accounting and you sir have been a blessing! You’re able to break down concepts easier for me to understand and fellow students. Stay up my boy 🙏🏽

[moparnas]

This is incredible, professor! Can't wait for the CPA prep course!!

[fiooneer]

Thank you for the time and effort you put into all your videos. It helps me so much and your explanation is so easy to understand<3

[hankarber]

Will you please make more videos about the Partnership? Your videos help me going through acct classes. I know your time is super constrain, but your works are extremely helpful. The way you deliver the lectures, concepts could not be better, easy to understand and very efficiency.
Have you ever thought about making the CPA review courses?

[elizabeths]

Absolutely amazing lecture videos! Thank you so much for all you do! You just made all the complicated concepts super clear and easy to understand. I really wish all my college accounting/tax courses were taught by you haha :D

[briceking]

Very clear video, nice job.Thanks for the info.

[real]

Professor, please make a series for Advance Accounting lessons. All your students on YouTube would greatly appreciate it!

[THAxBLiNt]

How did you learn so much? I'm a management accountant and enjoy your videos. It seems you have a depth of understanding that I would be loath to call a gift. What did you study, read, do to gain it?

[AGILISFPV]

Wait so does this apply to LLCs? Or just partnerships?