Understanding Partnership Taxation Certificate Series

Course Objectives

Understanding Partnership Taxation: Types of Basis & Contributions

Learning Objectives:

• Calculate Inside Basis, Outside Basis, and 704(b) Basis
• Recognize the concept of Substantial Economic Effect
• List the three requirements that need to be present for an allocation to be deemed to have Economic Effect
• Calculate the reallocation of items of gains and loss under IRC 704(b) when a qualified income offset is present
• Recognize the tax effects of transferring cash, property, and services to a partnership
• Recall the tax effects of contributing assets to a partnership that are encumbered by debt

Understanding Partnership Taxation: Distributions

Learning Objectives:

• List the key rules of the thumb to remember when dealing with distributions
• State the ordering rules for calculating a partner’s tax basis
• Describe the key differences between liquidating and non-liquidating distributions
• Determine any applicable tax gains and losses of cash and property distributions
• State the ordering rules for hybrid distributions that involve both cash and property

Understanding Partnership Taxation: Debt Allocations

Learning Objectives:

• State how debt allocations affect the calculation of a partner’s basis in the partnership
• Recognize how recourse and nonrecourse debt are allocated to partners
• Identify the tax effects of 704(c) on contributed property

Understanding Partnership Taxation: PTE Elections, 754 Elections, & Selling a Partnership Interest

Learning objectives:

• Identify when a pass-through entity can deduct state taxes it pays at the entity level.
• Recognize the tax implications of hot assets in the sale of a partnership interest.
• State the character of a gain on the sale of a partnership interest.

Understanding Partnership Taxation: Schedules K-2 & K-3

Learning objectives:

• Identify situations where a Schedule K-2 or K-3 must be filed for a partnership or S-Corporation
• State potential remedies to failure to file Schedule K-2 or K-3
• Recognize the key parts of Form 1116 that are affected by Schedule K-2 & K-3
• Recall which taxpayers do not need to file Form 1116
• State how Form 1118 is affected by Schedules K-2 & K-3
• Identify which Form 8865 filers need to file Schedule K-2 & K-3