Description

This program is an in-depth analysis of the Section 754 election and the two adjustments associated with the election under Section 743(b) and Section 734(b). The 754 election is a highly technical provision that provides great tax benefits to the owners of the partnership, and particularly in the case of Section 743(b), a new partner. This course covers the most common questions encountered by practitioners in their daily practices. The program includes a number of examples that provide insights into the mechanics of the two adjustments that follow upon a Section 754 election.

Target Audience

Accounting and financial professionals seeking to fortify their Section 754 knowledge base

Course Objectives

• Be familiar with the practical issues surrounding Section 754 and its application
• Effectively advise clients on these complex issues

Subjects

• How does a partner compute his or her basis in a partnership?
• What is the difference between a partner’s inside and outside basis?
• What is the difference between a partner’s capital account and partner’s outside basis?
• How does Section 732(d) impact the buyer of a partnership interest?
• How does a partnership report a Section 754 election on the partnership’s tax return?
• How does a partnership make a Section 754 election?
• How does a partnership make a Section 743(b) adjustment?
• How does a partnership make a Section 734(b) adjustment?
• How is a Section 743(b) adjustment or Section 734(b) adjustment allocated to the assets of a partnership?
• How is a Section 743(b) adjustment allocated within the class of ordinary income property and capital gain property?

Prerequisites

A basic understanding of the tax rules impacting individuals and pass-through entities