The purchaser of a partnership interest takes an outside basis in the interest equal to his proportionate share of the inside basis of partnership assets plus any amount of partnership debt apportionable to the purchased interest.

Question

Quizplus · Accepted Answer

The purchaser of a partnership interest takes an outside basis in the interest equal to the amount paid for the interest, including any of the purchaser's share of partnership liabilities assumed. The inside basis of the partnership assets and the apportionment of partnership debt affect the partnership's and other partners' basis calculations, but the purchaser's initial outside basis is determined by the purchase price.

The Purchaser of a Partnership Interest Takes an Outside Basis