Posted by: Howard J. Kass, CPA, AEP®
One of the more confusing aspects of ownership in either a partnership or Limited Liability Company (LLC) is understanding the effect that partnership or LLC debt has on an individual partner’s or member’s basis in that entity.
Knowing how debt affects one’s basis in an entity is important in determining how much a partner or member can deduct in losses that pass through from that entity.
Learn how to understand the tax consequences of partnership and LLC debt here.
If you have questions on this, or any other tax or business related issue, please contact the experts at Zinner & Co.
