A partner's basis refers to the amount of a partner's investment in a partnership, which is essential for determining the tax implications of distributions, contributions, and the partner's share of partnership income or losses. This basis can change over time due to various factors, including contributions made by the partner, distributions received, and the partner's share of partnership liabilities. Understanding a partner's basis is crucial for accurately calculating gains or losses when the partner exits the partnership or when assets are distributed.
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