Section 754 Elections/Redemption of a Partner

Course Details


Wednesday, October 30, 2019

9:30am – 1:00pm
(Registration: 9:00am)

Field of Study


Course Number


CPE Credit

4.0 hours CPE credit

Level of Knowledge



CalCPA Education Foundation


General knowledge in partnership taxation. Or, experience in drafting or advising partnership agreements; experience preparing forms 1065, 568, 565 and Schedule K-1 for partnerships and LLCs; or experience preparing partner income tax returns (forms 1040 or 1120) and advise partnerships and partners on tax-smart strategies.


This course focuses on two partnership subjects: (1) Section 754 elections and the impact on purchases, inheritances and partnership distributions (sections 743 and 734); and (2) redemptions of a partner including those involving a partner's  retirement and a partner's death (sections 731, 732, 742, and 736).

Case studies are used to illuminate the issues. Competing concerns of the partners are emphasized: e.g., conflicts between a buying partner or beneficiary and the continuing partners; and conflicts between a redeemed partner and the continuing partners. Form 1065 preparer reporting obligations, partner capital account impact, and pertinent sample language in partnership agreements will also be discussed.

Note: Course materials include an e-book and PowerPoint slides that reinforce concepts and will be available to attendees. 

Materials are provided as an ebook for this course.


  • Sections 754 elections and purchases or inheritances (section 743)
  • Section 754 elections and distributions (section 734)
  • Section 755 allocation rules
  • Liquidating distributions to partners (AKA: redemptions)
  • Treatment of retired partners or successors of a deceased partner
  • Special treatment relating to a retired or deceased service partner


  • Recognize how to make a timely section 754 election.
  • Determine how to compute and report the section 743 or 734 adjustments.
  • Determine how to allocate the basis adjustments among partnership assets per section 755.
  • Identify the circumstances in which the 754 election is deemed made.
  • Recognize the benefits and downsides of the election on the partners.
  • Identify the conflicts between the partners that result from the election.
  • Determine strategies for making a late section 754 election beyond merely a PLR request.
  • Distinguish a current distribution from a liquidating distribution.
  • Recognize the unique tax considerations related to the retirement or death of a partner.
  • Recognize the special rules involving the retirement or death of a service partner.
  • Identify the unique IRD issues involving the buy-out of a deceased partner’s successor.
  • Recognize the importance of partnership agreement language with respect to the above issues.

Designed For

CPAs or attorneys.

Course Pricing

Member Fee

Applicable if you are a HSCPA member in good standing.

Non-Member Fee

Applicable if you are not a HSCPA member.

Your Price $188.00

CPE Choice

Learn more about CPE Choice.
This course does not qualify for CPE Choice.

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