Understanding Partnership Taxation - Basis & Contributions

Overview

Calculating partnership basis is one of the most important things that we do as practitioners. However, it is also one of the most confusing. When we use the term basis, we really could be referring to one of three different things! This course will explore the differences between inside basis, outside basis, and 704(b) basis. Through several examples and practice problems, we will show you how to easily distinguish between these terms. We will also explore the tax implications of initial contributions of property to a partnership.

Highlights

• Three Different Types of Basis
• Contributions of Property
• In General
• IRC 704(b) Capital Accounts & Special Allocations
• Contributions of Property & Debt
• Contributions of Services
• IRS Notice 2020
• 43

Prerequisites

Working knowledge of fundamental partnership tax concepts

Designed For

Tax practitioners who are looking to improve their knowledge of basis types, the calculation of basis, and the implications of making contributions to a partnership.

Objectives

• Calculate Inside Basis, Outside Basis, and 704(b) Basis
• Recognize the concept of Substantial Economic Effect
• List the three requirements that need to be present for an allocation to be deemed to have Economic Effect
• Calculate the reallocation of items of gains and loss under IRC 704(b) when a qualified income offset is present
• Recognize the tax effects of transferring cash, property, and services to a partnership
• Recall the tax effects of contributing assets to a partnership that are encumbered by debt

Preparation

None

Notice

This is a self-study/on demand course offered by a 3rd party vendor. Course access information will be emailed directly to you by Peters Professional Education (PPE). The course expires one year from the purchase date.