Operating Rules For Partnerships Certain items are passed through to partners without losing their identity These should be separately stated due to each partner's different tax situation Items that do not have special tax effect are netted at the partnership level and the 'esults are ordinary income or loss, then allocated to partners based on agreementOperating Rules For Partnerships • Certain items are passed through to partners without losing their identity – These should be separately stated due to each partner’s different tax situation • Items that do not have special tax effect are netted at the partnership level and the results are ordinary income or loss, then allocated to partners based on agreement