In this episode of How Tax Works, host Matt Foreman discusses the tax consequences of going from a disregarded entity to a partnership (Rev. Rul. 99-5) and from a partnership to a disregarded entity (Rev. Rul. 99-6). From explaining when there is taxable income (and how to structure to avoid it), as well as capital accounts, inside basis, and outside basis, this episode is for anyone who is starting, selling, or investing in a business, whether alone or with a partner. Please also see ...