Understanding Partnership Taxation: Types of Basis, Contributions, and Distributions WEBCAST
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 among these terms. We will also explore the tax implications of initial contributions of property to a partnership as well as the different types of partnership distributions.
Highlights
Three different types of basis. Contributions of property. IRC 704(b) - Capital Accounts and Special Allocations. Contributions of property and 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 that are encumbered by debt to a partnership. List the key rules of thumb to remember when dealing with distributions. State the ordering rules for calculating a partner’s tax basis. Describe the key differences between liquidating and non-liquidating distributions. Determine any applicable tax gains and losses of cash and property distributions. State the ordering rules for hybrid distributions that involve both cash and property.
Preparation
None.
Notice
None.
Leader(s):
Leader Bios
Robert Henkels, Surgent McCoy CPE LLC
Robert J. Henkels, CPA, is the president of Professional Tax & Accounting Seminars, Inc. He is also a shareholder in a CPA firm with a diverse client base and has been a highly rated discussion leader for the past 33 years for various organizations. Mr. Henkels has 39 years of practical public accounting experience with national, regional, and local CPA firms. Mr. Henkels served as an adjunct professor at Wheeling Jesuit University in the M.B.A. program, La Roche University, Duquesne University, University of Maryland, and Montgomery College. He also served as an assistant professor at the Indiana University of Pennsylvania for three years. He has also authored various continuing professional education courses and written numerous articles for newspapers and magazines. He earned his bachelor’s degree in accountancy from the University of Maryland, master’s degree in educational administration from Northern Illinois University and a bachelor’s degree in education with a math/psychology concentration from Northern Illinois University. He is an active member of the AICPA and the PICPA.
Non-Member Price $210.00
Member Price $185.00