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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