If the partners agree to specially allocate one item (for example, capital gains) 80/20 for economic purposes per SEE safe harbor, the corresponding tax amounts must also be allocated 80/20.However, IRS has a framework that can reallocate the partnership items based on the “ partner's interest in the partnership” if IRS determines the method of sharing the partnership items lacks the “Substantial Economic effect” (SEE) To meet the SEE, there are strict rules to maintain meaningful capital accounts including Deficit Makeup Requirement for those accounts.With the requirement, the partner must at some point contribute sufficient capital to eliminate the deficit, and the partner has the burden of the loss that partnership has and the allocation of the partnership will be respected by the IRS.This is a very high-level summary of the rules and is not comprehensive. there are many exceptions as well.Since the substantial economic effect, safe harbor allocation rules are complex and requires considerable additional recordkeeping, it's easier to follow PIP standard. 

Although less strict that what is required of a public offering, raising capital for syndication or similar deals still requires the proper framework and legal documentation.

Cut the ties that hold the chain link to the poles & framework and roll up the section that you want to move.

I am just learning about wholesaling and I wanted to make sure that I understood the framework of the process.

The purpose of these statutory frameworks is to prevent people from coming in and "helping" the homeowner by taking all the equity.

Of course this must be done within the framework of the laws, but I believe you get to decide what you think is a fair split, and then offer that to the investors that are interested. 

This is just my mental framework for thinking about the business so take it with a grain of salt.

OMG that frame work....classic! 

Upon their arrival, they notice that there was some frame work that was done up there and they call the building inspector.

@Steve Podwojski Going from a multi-member LLC to a single-member LLC does not spark an audit in and of itself as long as you treat it for tax purposes within the framework of Revenue Ruling 99-6, which is the IRS' guidance for this very situation.Are you buying out the other members for cash?