Section 754 Elections/Redemption of a Partner

Course Details

Date

Friday, November 8, 2019

10:30am – 2:00pm
(Registration: 10:00am)

Field of Study

Taxation

Course Number

4193339F

CPE Credit

4.0 hours CPE credit

Level of Knowledge

Intermediate

Vendor

CalCPA Education Foundation

Prerequisites

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.

Description

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.

Highlights

  • 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

Objectives

  • 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.

$120.00
Non-Member Fee

Applicable if you are not a HSCPA member.

$188.00
Your Price $188.00

CPE Choice

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

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