Source: http://www.drtaccounting.com/2011/10/basic-rules-of-subchapter-k-partnership.html
Timestamp: 2019-04-20 22:20:29+00:00

Document:
§§ 701 – 702- Each partner is responsible for including income, gains, deductions, and losses properly allocated to him or her in determining their income tax liability.
§ 704 - The allocation of income, gains, deductions, and losses to partners will reflect the provisions of the partnership agreement and applicable state law.
§ 721- The act of establishing a partnership, including the contribution of property by the partners to the partnership, is normally not a taxable event either to the partners or the partnership.
§ 722- partner has a new asset- his or her interest in the partnership. The partner's adjusted basis in the partnership interest will be measured initially by the cost of the partnership interest or the adjusted basis of properties transferred by the partner to the partnership.
§ 723- The basis of contributed property is not affected by the transfer; the contributing partner's basis carries over to the partnership.
§§ 731 and 736 - Because a partner will already have paid income tax on the amount of income so attributed, distribution of property by the partnership to a partner will not generally be a taxable event, Watch out for exceptions.
§ 705 - The partner's adjusted basis in the partnership interest will be increased by partnership income and gains, and be reduced by partnership deductions and losses, allocated to the partner. Partner's adjusted basis in the partnership interest will also be reduced when the partnership distributes property to the partner.
§ 741- The partner is likely to realize a gain or loss upon the sale or exchange of the partnership interest to another.
§ 731 and 736 - The partners will recognize a gain or loss upon the liquidation of a partnership only in limited circumstances.

References: § 704

§ 721

§ 722

§ 723

§ 705

§ 741

§ 731