Describe the computation of a partners adjusted tax basis in partnership interest.
The basis of a partnership interest is the money plus the adjusted basis of any property the partner contributed. If the partner must recognize gain as a result of the contribution, this gain is included in the basis of his or her interest. Any increase in a partner's individual liabilities because of an assumption of partnership liabilities is considered a contribution of money to the partnership by partner.
Describe the computation of a partners adjusted tax basis in partnership interest.