Surgent's Section 754 Step-Up in Basis: Understanding the Tax Issues for Partnerships and LLCs
Available Anytime
Location:
Online
2Credits
Technical Business
Registration is Open
FICPA Members
Nonmembers
$119.00 Regular Price
Product Code: SU24-S754-SSWC
Level: Intermediate
Vendor: Surgent
Field of Study: Taxes
Overview:
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.Objectives:
- 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
Major Topics:
- 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
- How to make the 754 basis adjustment
Designed For:
Any Accounting and Finance Professional who wishes to understand the tax rules and economic opportunities associated with having a partnership make a Section 754 electionPrerequisite:
A basic understanding of the tax rules impacting individuals and pass-through entitiesAdditional Info:
You will receive an email from info@surgent.com with instructions on how to log onto your course shortly. If you do not receive the email within the hour, please check your spam filter.
For technical support, registration questions or other customer service-related inquiries, please call (800) 778-7436 or email info@surgent.com. Phones are staffed from 8:30 a.m. to 5:00 p.m. Eastern Time, Monday through Thursday, and 8:30 a.m. to 4:00 p.m. Eastern Time on Friday.