How New Partnership Rules Impact Basis Shifting and Tax Strategies

Overview

With recent updates to partnership tax regulations, including adjustments to the rules surrounding the allocation of income, deductions, and credits among partners, businesses and individuals must adapt their strategies to remain compliant while maximizing tax efficiency. This session explores the significant changes in partnership taxation and their implications for tax planning, with a focus on "basis shifting," allowing partners to adjust the tax basis in their partnership interests to reduce taxable gains or maximize deductions. 

**Please Note: If you need credit reported to the IRS for this IRS-approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com.

 

Objectives

• Identify changes in partnership taxation
• Apply new rules to optimize tax structures and ensure compliance
• Apply planning strategies and review potential pitfalls

Highlights

• Overview of new partnership taxation rules
• Explore the new Form 7216, Multi-Year Reporting related to Section 355 Transactions
• Tax benefits of “basis shifting”
• Discuss Form 8308, reporting the sale of exchange of partnership interest
• Partnership allocation and profits interest
• Self-employment tax
• Provide planning partnership taxation planning strategies