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Tax Glossary
What Is a “Partnership distribution”?
A partnership distribution is a transfer of cash or physical property from a business to one of its partners or...
Tax Glossary
What Is a “Book capital account”?
A book capital account is a financial record that tracks a partner’s or LLC member’s true economic equity in a...
Tax Glossary
What Is a “Tax capital account”?
A tax capital account is a financial record that tracks a partner’s or LLC member’s equity in a business using...
Tax Glossary
What Is a “Capital account”?
A capital account is a financial and tax record that tracks a partner’s or owner’s equity in a business, typically...
Tax Glossary
What Is “Inside basis”?
Inside basis is the tax value of the assets owned directly by a business, such as a partnership or an...
Tax Glossary
What Is “Outside basis”?
Outside basis is a tax term that represents a partner’s or LLC member’s tax investment in their ownership share of...
Tax Glossary
What Is “Partner basis”?
Partner basis (sometimes called “outside basis”) is a tax accounting measurement of your personal financial investment in a partnership or...
Tax Glossary
What Is “Guaranteed payment”?
A guaranteed payment is a set amount of money paid by a partnership to a partner for their services or...
Tax Glossary
What Is “Partner’s distributive share”?
A partner’s distributive share is the specific portion of a partnership’s income, losses, deductions, or tax credits that is allocated...
Tax Glossary
What Is “Form 1065”?
Form 1065 is the official IRS tax document used to report the financial performance of a business operated as a...