1. Discuss the adjustments that must be made to a partners basis in the partnership interest. When are such adjustments made? Why?

2. When is partnership income subject to self-employment tax or the net investment income tax by an individual partner?

3. Write an email to a client describing situations in which the partnership entity form might be more advantages (or disadvantages) than operating as a C corporation. Use subheadings and bullet points to highlight your major thoughts.

4. What is the difference between the definition of proportionate current distribution and a proportionate liquidating distribution? What is the significance of the word proportionate?

5.How does a proportionate current distribution of cash from a partnership to a partner compare with one from a Subchapter C corporation to a shareholder?