Calculate the basis of a partnership interest or S Corporation stock ownership. Determine the amount and the character of income or loss the partner or shareholder should recognize, in the event of distributions of property or money. Apply the basis, at-risk, and passive activity loss limitations to pass-through losses from partnerships, LLCs, and S Corporations. Determine the tax treatment of sales of either partnership interests or S Corporation stock. Calculate the basis of partnership or LLC property following certain distributions and transfers of interests in the entity.