Basis worksheets

[DTS]

Is it mandatory to include each partner's basis worksheet with a filed return?

Thanks,
Dennis

[solomon]

Not necessary.

[BOB W]

Basis

Partners inside basis is part of the K-1 Capital Account. That line shows beginning capital, income, withdrawals, and ending capital.

[S T]

Inside Basis Capital Accounts

Bob,

Dennis and I have discussed this,

if my understanding is correct, inside basis for the capital accounts does NOT include any liabilities that the partners/members, might be liable for, but the Outside Basis for loss recognition would include liabilities.

So if the LLC or the partnership were to have no liabilities it is probable that the Outside Basis of partner/member would be the same as the capital account. But if there were liabilites that the partner/member were personally liable for a debt, then the inside basis (capital account) would be different from the Partner's Basis (Outside Basis) to limit loss deductions.

Sandy

[BOB W]

Liabilities.....

...... change with each payment and each newly created liability, so basis needs to be calculated as of any point in time. In otherwords, it is a fluid issue based on need. Previous calculation become a mute point the day after the need is satisfied.

Getting back to your original question, you may want to if there is a loss and you want to prove losses are deductible due to outside basis issues when inside basis has been used up..