A partner$$s outside basis $($is$,$ is not$)$ reported on Schedule K$-1.$

$\_\_\_\_\_\_\_\_\_\_\_\_\_$ basis refers to the $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ of the partnership$$s assets to the partnership. While many transactions with partners can cause a difference between inside and outside basis, an election under Code Section $\_\_\_\_\_\_\_\_$ allows the partnership to adjust the inside basis of assets so that these two bases remain the same.

A partner$$s interest in a partnership can be a $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ interest or a $\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ or loss interest. While most partners have both, it is possible that a partner could have only a capital interest or only a profits interest. It is also possible that partners split income in one way and losses differently.