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Thank you for using justanswer. A partner can acquire an interest in partnership capital or profits as compensation for services performed or to be performed. . If the $ amount for your "sweat equity services" were agreed to beforehand, then that $ amount becomes the "Fair Market Value" of the services performed, and that value becoms your contribution (basis) in the partnership. If there was not an agreement before hand, you will have to negotiate the value and I would have the other partner/partners sign a slip stating that they agree that your services were worth $X, and then that becomes your basis in the partnership.
If you are considered to be a "general partner", meaning that you became a member of the partnership with the intent to actively participate in the business of, and help build the business/revenue of the partnership and had the partnership made money you would have paid self employment tax on the profit, then this is a non passive loss to you as a general partner, and your loss is not limited to any $ amount (or equivalent of ) you contributed to the partnership.
If you are now considered a "limited partner", meaning that the value of your sweat equity was to be your only investment, and you have no on going relationship in whatever business the partnership is in, and you are now only going to receive a % of the profit/loss from the partnership, then you must be careful that your losses do not exceed the value of the services you provided. (Your basis in the partnership)
Please see below for more in depth information:
Publication 551 (5/2002), Basis of Assets
I hope this helps
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