In a partnership, a partner's share of ownership, profits, losses, and liabilities is known as a partnership interest. The following are the essential elements of a partnership interest:

1. If the partnership were to liquidate, the partner would receive a share of the assets from capital interest. The partnership includes both the partner's initial contributions and any subsequent contributions or earnings.
2. The partner's interest in profits and losses is called Profits Interest. Incentivizing employees or partners who contribute to the partnership's growth and success is a common practice.
3. For tax purposes, the partner's proportionate share of the partnership's income, deductions, credits, and other tax items is called a Distributive Share.
4. Partners have the option to share in the partnership's liabilities as well. Partners assume responsibility for a portion of the partnership's debts and obligations.
5. The partnership agreement may allow partners to participate in major decisions that affect the partnership.
6. The partnership agreement often defines these components, outlining the rights and obligations of each partner.