Top Ten Questions from Partnership Clients Regarding the Section 754 Election

Overview

This program is an in-depth analysis of the Section 754 election and the two adjustments associated with the election under Section 743(b) and Section 734(b). The 754 election is a highly technical provision that provides great tax benefits to the owners of the partnership, and particularly in the case of Section 743(b), a new partner. This course covers the most common questions encountered by practitioners in their daily practices. The program includes a number of examples that provide insights into the mechanics of the two adjustments that follow upon a Section 754 election.

Objectives

Be familiar with the practical issues surrounding Section 754 and its application

Effectively advise clients on these complex issues

Highlights

How does a partner compute his or her basis in a partnership?

What is the difference between a partner's inside and outside basis?

What is the difference between a partner's capital account and partner's outside basis?

How does Section 732(d) impact the buyer of a partnership interest?

How does a partnership report a Section 754 election on the partnership's tax return?

How does a partnership make a Section 754 election?

How does a partnership make a Section 743(b) adjustment?

How does a partnership make a Section 734(b) adjustment?

How is a Section 743(b) adjustment or Section 734(b) adjustment allocated to the assets of a partnership?

How is a Section 743(b) adjustment allocated within the class of ordinary income property and capital gain property?

Designed For

Accounting and financial professionals seeking to fortify their Section 754 knowledge base

Prerequisites

A basic understanding of the tax rules impacting individuals and pass-through entities

Preparation

None

Notice

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Fees

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

John Kilroy, Surgent McCoy CPE, LLC

Leader Bios

John Kilroy, Surgent McCoy CPE, LLC

John Kilroy is a managing member of iValue Financial Planning LLC, located in the Philadelphia, Pennsylvania area. John engages clients in financial and tax planning, as well as preparing tax returns for individuals, corporations, partnerships, estates, and trusts. John is a CPA and a CFP® practitioner. He is a 1979 graduate of Villanova University with a BS in Accounting. John is a member of the Pennsylvania Institute of Certified Public Accountants and the Financial Planning Association (FPA). Within the FPA, John has served as a board member of the Philadelphia Tri-State chapter and on its education and finance committees. John is an adjunct faculty member for the Temple University Certificate of Financial Planning Program. He is a frequent speaker and facilitator on tax and financial planning topics. John has been quoted in the Wall Street Journal, MarketWatch.com, and USATODAY.com. He has written for the Journal of Financial Planning, and is a contributor to Retirement Weekly. John has also discussed financial and tax planning issues on various radio outlets.

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