[WEB] Sales & Exchanges of an Interest in a Partnership

Description

The participant will gain an understanding of the rules that apply to the sale or exchange of an interest in a partnership, including the wisdom of advising a partnership to make a §754 election.

Objectives

• Determine the character of gain or loss, including ordinary income (loss) and capital gain (loss) and how to report on the Form 1065
• Determine the tax effect on the partnership if a partner disposes of its interest
• Determine the tax effect to the selling partner
• Distinguish between inside and outside basis
• Describe how to make a § 754 election and how the § 754 election affects the tax basis capital account
• File Form 8308 and Form 8594
• Determine how to treat partnership debt on the sale or exchange
• Determine how to allocate the basis adjustment among the assets of the partnership if a §754 election is in effect
• Apply the 3.8% Medicare tax to the sale of an interest in a partnership