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What Is a “Liquidating distribution”?

Artificial Intelligence Generated Content
06/01/2026

A liquidating distribution is a final payout of cash or property from a business to an owner that completely terminates...

What Is a “Current distribution”?

Artificial Intelligence Generated Content
06/01/2026

A current distribution (also known as a non-liquidating distribution) is a transfer of cash or property from a business to...

What Is a “Partnership distribution”?

Artificial Intelligence Generated Content
06/01/2026

A partnership distribution is a transfer of cash or physical property from a business to one of its partners or...

What Is a “Book capital account”?

Artificial Intelligence Generated Content
06/01/2026

A book capital account is a financial record that tracks a partner’s or LLC member’s true economic equity in a...

What Is a “Tax capital account”?

Artificial Intelligence Generated Content
06/01/2026

A tax capital account is a financial record that tracks a partner’s or LLC member’s equity in a business using...

What Is a “Capital account”?

Artificial Intelligence Generated Content
06/01/2026

A capital account is a financial and tax record that tracks a partner’s or owner’s equity in a business, typically...

What Is “Inside basis”?

Artificial Intelligence Generated Content
06/01/2026

Inside basis is the tax value of the assets owned directly by a business, such as a partnership or an...

What Is “Outside basis”?

Artificial Intelligence Generated Content
06/01/2026

Outside basis is a tax term that represents a partner’s or LLC member’s tax investment in their ownership share of...

What Is “Partner basis”?

Artificial Intelligence Generated Content
06/01/2026

Partner basis (sometimes called “outside basis”) is a tax accounting measurement of your personal financial investment in a partnership or...

What Is “Guaranteed payment”?

Artificial Intelligence Generated Content
06/01/2026

A guaranteed payment is a set amount of money paid by a partnership to a partner for their services or...

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