[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.