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

By registering for this program and, accordingly, receiving the eMaterials, you’re acknowledging that you understand both the copyright restrictions on your eMaterials and the CTCPA cancellation policy. https://www.ctcpas.org/events/cpe-policies

Fees

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

Michael Frost, Surgent McCoy CPE, LLC

Leader Bios

Michael Frost, Surgent McCoy CPE, LLC

Mike Frost, CPA, of Jacksonville, Alabama, provides tax consulting, continuing education, and motivational speaking services through his company, Mike Frost Enterprises. Mike is a former shareholder of MDA Professional Group, PC, where he managed the tax department of the Albertville office. Mike has 31 years of experience in public accounting, including but not limited to: Business and individual income tax preparation and planning; mergers and acquisitions; estate, gift, and trust tax preparation; small business consulting; Medicare planning and other elder care; audit representation; and religious groups and clergy. Mike has conducted CPE engagements and seminars throughout the United States and has served as technical advisor for tax articles in The Sand Mountain Reporter, a local newspaper. Mike has been a featured presenter at the Alabama Society of CPAs Annual Meeting and the Federal Tax Clinic held annually at the University of Alabama in Tuscaloosa. Mike graduated with “high honors and distinction” from Jacksonville State University with a major in accounting, a minor in finance, and a 4.0 GPA. He is a member of the American Institute of Certified Public Accountants and the Alabama Society of Certified Public Accountants. In addition, he is a graduate of the Tax Planning and Advising for Closely Held Businesses Certificate of Educational Achievement Program sponsored by the AICPA.

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