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Tax Glossary
What Is a Section 743(b) Adjustment?
A Section 743(b) adjustment is a special tax calculation that updates a new partner’s share of a partnership’s asset values...
Tax Glossary
What Is a Section 734(b) Adjustment?
A Section 734(b) adjustment is a technical partnership tax calculation that corrects the value of remaining business assets after a...
Tax Glossary
What Is a “Section 754 Election”?
A Section 754 election is a special tax choice made by a partnership or multi-member LLC that synchronizes the tax...
Tax Glossary
What Is “Section 704(c) Gain”?
A Section 704(c) gain is a tax rule that tracks the pre-existing, unsold profit attached to a piece of property...
Tax Glossary
What Is a “Section 704(b) Capital Account”?
A Section 704(b) capital account is a specialized financial record used by partnerships and multi-member LLCs to track each partner’s...
Tax Glossary
What Is “Built-in Loss”?
A built-in loss is the drop in value an asset experiences before a major tax event or business transition, even...
Tax Glossary
What Is “Built-in Gain”?
A built-in gain is the hidden, unrealized profit attached to an asset that increased in value before a major transition,...
Tax Glossary
What Is a “Partnership contribution”?
A partnership contribution is an asset—such as cash, services, or physical property—that an owner puts into a partnership or multi-member...
Tax Glossary
What Is a “Liquidating distribution”?
A liquidating distribution is a final payout of cash or property from a business to an owner that completely terminates...
Tax Glossary
What Is a “Current distribution”?
A current distribution (also known as a non-liquidating distribution) is a transfer of cash or property from a business to...