Many people spoke very highly about the logic of subchapter k but I find myself very hard to dive into it. How do I maximize the use of this book and what is the most efficient/effective way of reading this book. I constantly find this book has reference to certain code sections and I had to search that code section online first , which is quite painful. Not sure how universities use this book for their mater of taxation program. Any insight is helpful, thanks.

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You and I form a PS.
You put in $5m cash.
I put in a BLDG with FMV $5m but $0 tax basis.
We are equal partners.
704(b)-we can each be allocated up to 5m loss.
You can deduct yours.
But I cannot deduct mine - no 704(d) tax basis
704(c) remedial method lets us pretend
You bought an interest in bldg from me
You get allocated fictional tax depreciation
I get allocated equal amount fictional income
This helps you but hurts me.
It’s elective so it’s a negotiation.

So you now understand the purpose of 704(b) (c) and (d).

Now read Logic of Sub K with that background.

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Thank you!

All of the code sections are in the 700s. I love that book but I took the class with the author.

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I hope I could take the same class with author

Seems like you need to approach it from a different perspective, one of openness and curiosity. It helps to have a generally understanding of each part of the sub chapter first, maybe take that path then dive deeper

Yes I agree, thank you!

Buy the Partnerships in a Nutshell book to go along with it.

Thank you very much!

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