Property may be properly reflected on the books of the partnership at a book value that differs from the adjusted tax basis of such property. In these circumstances the capital accounts of the partners will not be considered to be determined and maintained properly unless the partnership agreement requires the partners' capital accounts to be adjusted for allocations to them of depreciation, depletion, amortization, and gain or loss, as computed for book purposes, with respect to such property. Discuss?

Answer rating: 100% (QA)

In the context of partnership accounting it is common for the book value of partnership assets to differ from their adjusted tax basis This difference ... View the full answer