Surgent's Advanced Partnership/LLC Workshop: How to Do Optional Step-Up inBasis Under 754 and Related Provisions Download

Overview

This course explores the practical issues in the many instances in which a step-up in basis can create tax advantages for partners and members. This course includes case studies to illustrate the critical points.

Prerequisites

Experience dealing with partnership and LLCs; one or more intermediate courses on partnerships and LLCs

Objectives

• Distinguish the tax consequences of a partnership interest sale and of a partnership asset distribution with and without a §754 election
• Identify circumstances when a §754 election may be beneficial
• Calculate the basis adjustments to individual partnership properties when a §754 election is made

Highlights

• Identifying when an election to adjust basis will be available
• Determining when the basis adjustment must be made or may be made without an election
• Learning how to make the calculations to determine a step-up and allocate that step-up among partnership assets
• Examining practical examples dealing with a sale of a partnership interest and the effects of §734(b)
• Exploring the alternatives to electing a basis adjustment
• Understanding a distribution of property and when an inside basis adjustment can be considered
• Studying examples dealing with sale of assets vs. sale of partnership interests and issues with hot assets
• Finding out how to keep track of the “books” for tax preparers when the inside basis adjustment is made, and how to flow through adjustments through a tax return and K-1
• Identifying the changes to partnership tax law effected by the Tax Cuts and Jobs Act of 2017