Event Description

This course explores the practical issues in the many instances in which a step-up in basis can create tax advantages for partners and members. This course includes case studies to illustrate the critical points.

Designed For

Accounting and Financial Professionals in public accounting who work extensively with LLC and partnership tax issues

Objectives

Distinguish the tax consequences of a partnership interest sale and of a partnership asset distribution with and without a Section 754 election Identify circumstances when a Section 754 election may be beneficial Calculate the basis adjustments to individual partnership properties when a Section 754 election is made

Major Subjects

Identifying when an election to adjust basis will be available Determining when the basis adjustment must be made or may be made without an election Learning how to make the calculations to determine a step-up and allocate that step-up among partnership assets Examining practical examples dealing with a sale of a partnership interest and the effects of sect 734(b) Exploring the alternatives to electing a basis adjustment Understanding a distribution of property and when an inside basis adjustment can be considered Studying examples dealing with sale of assets vs. sale of partnership interests and issues with hot assets Finding out how to keep track of the books for tax preparers when the inside basis adjustment is made, and how to flow through adjustments through a tax return and K-1

Prerequisites

Experience dealing with partnership and LLCs; one or more intermediate courses on partnerships and LLCs

Instructions

None