When a partnership is formed the partners will generally contribute property to the partnership in the form of cash and/or property. These contributions of property impact the partner’s basis and capital account in the partnership and thus may impact tax matters in the future. A contribution of property will generally increase a partner’s capital account and a distribution of property from the partnership to the partner will generally decrease a partner’s capital account in the partnership.
The video below has been prepared by a business attorney at The McGuire Law Firm to provide general information regarding the contribution of property to a partnership. You should speak directly with your business attorney or tax attorney regarding your partnership matters and the contribution of property.
Contact The McGuire Law Firm to speak with a business attorney or tax attorney in Denver or Golden Colorado.