Surgent's Section 754 Step-Up in Basis: Understanding the Tax Issues for Partnerships and LLCs (Webinar)

Code: WSS75410

Date Wednesday, January 29, 2020
Time 12:00PM - 2:00 PM
Central Time
Location Online
CPE credits CPE 2.0
Specialty
credits
2.0 IRS CE approved
Field(s)
of study
Taxes - Technical (2.0)
Instructor Michael Tucker, PhD, LLM, JD, CPA
Surgent
Fees
Standard member fee $89.00
checkmarkStandard nonmember fee $89.00

Members: Please log in to receive member fee.

Description

When a purchaser buys an existing partner's partnership interest, or the interest of a member of a limited liability corporation (LLC) taxed as a partnership, the amount paid becomes the basis for the purchaser's partnership interest (outside basis). If the partnership's assets have appreciated sufficiently, the difference between the new partner's inside and outside basis can be substantial. This disparity can deprive the new partner of depreciation deductions and inflate his or her share of the gain from subsequent property dispositions unless a Section 754 election is in effect. The Section 754 election can also apply when a partnership makes a distribution of property and the basis of the distributed property to the partnership and the basis the partner/distributee will take in the distributed property are not equal. In this case, a partnership can recover basis it would otherwise lose if the 754 election were not in effect.

Who should take this program?

Any tax practitioner who wishes to understand the tax rules and economic opportunities associated with having a partnership make a Section 754 election

Major subjects

  • How and why a partnership makes a 754 election
  • The effect of the 754 election when an interest in a partnership is sold or inherited
  • How the 754 election applies when a partnership makes a distribution of property to one or more of its partners
  • Allocating the 754 basis adjustment

Learning objective(s)

  • Determine the amount of a Section 754 basis step-up
  • Know how to allocate the basis step-up to the partnership's assets
  • Know how a partnership makes a Section 754 election and reports it to the IRS

Notes:

Course code Code WSS75410
Sponsor Surgent
NASBA ID#: 103212
Level Intermediate
Format Group Internet Based
Prerequisites Prereq. A basic understanding of the tax rules impacting individuals and pass-through entities
Advance
prep
None