1.How are partners in a partnership taxed on their distributive share of the partnership's income?

1a.How does this distribution impact their basis in their partnership interest?

1b. How are distributions of cash to a partner taxed and what is the impact of the distribution on the partner's partnership interest?

1c.What is a guaranteed payment and how is this taxed and what impact does it have on the partner's basis in the partnership interest.

2. How are S corporation shareholders taxed on their distributive share of the S corporation's income?

2a.How does this distribution impact their basis in their S corporation stock?

2b. How are distributions of cash to an S corporation shareholder taxed and what is the impact of the distribution on the basis of their S corporation stock?

3. Discuss whether a partner and a S corporation shareholder can be an employee. How is income generated from services performed by a partner vs. an S corporation shareholder taxed as far as FICA/SE are concerned?