Surgent's Understanding Partnership Taxation: Types of Basis, Contributions, and Distributions

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<

  Preparation

  None