Interactive Partnership Tax Benefit Simulator (2024)
Unlock the Power of Partnership Taxation
Use this simulator to understand how a partner's tax basis is calculated—including the crucial impact of partnership debt—and how it determines the amount of business loss you can deduct.
1 Partner Basis Calculator
A partner's basis determines the amount of tax-free distributions and deductible losses. Unlike other entities, it includes your share of partnership debt.
Your Calculated Tax Basis
$0
2 Loss Limitation Simulator
Enter your share of the partnership's loss to see how much is deductible this year based on your tax basis calculated above.
Key Partnership Concepts
● Pass-Through Taxation
The partnership pays no tax. All income and losses flow through to partners, avoiding C-Corp "double taxation."
● Guaranteed Payments
Payments for services or capital use. They are a deductible expense for the partnership and taxable self-employment income for the partner.
● QBI Deduction
Partners can generally deduct up to 20% of the Qualified Business Income that passes through to them from the partnership.
● Loss Carryforward
Any loss that exceeds your basis isn't lost. It's suspended and carried forward indefinitely to offset future income after your basis is restored.
