This document discusses partnership taxation and the formation and operation of partnerships. It covers key topics such as: 1) The definition of a partnership and different types of entities taxed as partnerships including general partnerships, limited liability partnerships, and limited liability companies. 2) Partnership taxation principles including flow-through treatment and calculating partnership income in two steps of ordinary income and separately stated items. 3) Tax consequences of partnership formation such as the nonrecognition of gains or losses on contributions of property in exchange for partnership interests. 4) Determining a partner's basis in their partnership interest and adjusting the basis for partnership activity to prevent double taxation.

1. Chapter 10 Partnerships: Formation, Operation and Basis

20. Partnership Formation Transaction